RRRR: Rare Medium Group (soon to be) formerly ICC Message Board

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Technology Stocks : RRRR: Rare Medium Group (soon to be) formerly ICC

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To: Tech Monster who wrote (762)	6/19/1999 7:26:00 PM
From: Rajiv	Read Replies (1) of 1150

I am "neutral" on RRRR at the moment.. BTW, longs might not like short-sellers but the points we raised are valid. Some of them - RRRR loves press releases. It has issued several on the Apollo investment. Can you show me a press release where the exact terms have been given? What is the % of shareholders who dig through SEC filings ? What is the % of shareholders who know what 25% amounts to ? My guess is less than 10%. Why is RRRR reluctant to divulge the terms ? I guess it does not want the shareholders to know that Apollo(unlike the new shareholders) are getting shares at a big discount. Some of the longs were claiming that this is the next CMGI or that it is going to $30. Pure BS. RRRR is overvalued at the current levels. All you have to do is look at USWB's revenues and see that RRRR deserves a fraction of the current market-cap. RRRR is paying 2 times TTM revenues for its acquisitions. Using this yardstick, how much is RRRR worth ? very little.. The Microsoft angle. Pull up the financial statements. Look at the revenues. Look at the # of clients. How much do you think the Microsoft project generated in revenues ? For that matter, how much do you think the projects that all the press releases are mentioning generates in revenues.. IMO not much. Most of the points are still valid. However I don't see the current levels (in the current environment) convenient to stay short RRRR. The best time to have shorted it was when it went beyond 18 and I did short at that level. What is my interest in RRRR ? I have done some DD on RRRR and it takes very little (relative) effort to keep up with it. Just because I don't have any position does not mean I will not return at a later date. I think all the easy money has been made on the long side. RRRR has a huge float and it will be very difficult to move it. Have you noticed the minimal movement based on the BW article. A stodgy retailer like K-mart moved 12% on the BW coverage but an internet stock like RRRR managed only 1/2 pt. Are the longs aware that Apollo has the license to print shares (via warrants). If RRRR attempts to move higher, I am sure that some new shares will hit the market. And I am not even talking about all those newly issued shares for RRRR's acquisitions. RRRR will probably see strong support at the 10-11 level and strong resistance at the 15-16 level. I will probably stay on the sidelines for a couple of quarters (I need the time to see where exactly the RRRR is headed with its business model and also to judge the nature of the Apollo involvement). I will not be surprised if a couple more second string firms initiate coverage of RRRR. Probably with buy ratings. Regards. Rajiv

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