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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 95.53+0.7%12:59 PM EST
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To: Skeeter Bug who wrote (24499)7/11/1999 3:59:00 AM
From: Dave B  Read Replies (2) of 93625
 
Skeeter,

Finally, an easy one.

also explain why everyone is beating down the door to give free pcs away for internet access.

Since unclewest started it <g>, I'll stay with the Clintonisms -- "It's the promotion, stupid". It's simply a promotion. And a very profitable one. You must have missed the analysis I posted on the MB thread a couple of months ago so here it is again:

To: Papaya King (59183 )
From: Dave B
Wednesday, May 12 1999 5:55PM ET
Reply #59185 of 64374

Papaya,

Since you can get net access for free (netzero.com), you're paying $960 over 4 years for a $500 computer. That's a leasing deal with an approximate annual interest rate of 37%. Just buy a $500 computer and use netzero.com. Or, better yet, I'd be happy to sell you a $500 computer for 48 payments of $17.50 a month (and then you can use netzero.com for access). My interest rate is just under 30%. Where should I send the contract?

Dave

Who wouldn't jump at the chance to get a return of 37% percent on their money? The guys selling you this deal are raking it in.

Incidentally, this analysis did not include the shipping and one-time set-up fees which had to be paid up front as well which took the interest rate over 50%. It also assumed a $500 computer rather than a $399 computer which bumps the interest rate up even more.

Now a pet peeve: I believe that Finance should be a required course in high school for ninth graders. Our nation is absolutely a bunch of idiots when it comes to financial analysis and financial responsibility.

Dave

p.s. Papaya King did not take me up on my offer.
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