Message 10823609
To: +MKC (488 )
From: +Eric Fader
Wednesday, Aug 4 1999 2:25PM ET
Reply # of 492
Mike - Thanks for your input. While I agree with your views, generally, I wouldn't for a
moment consider buying KOOP anywhere near these levels. I don't think we're close to
a bottom because I believe there is a critical, fundamental flaw in KOOP's business
plan, as I and others have discussed on this thread recently. If the stock price were to
remain high, KOOP could probably acquire some revenue-producing businesses, as
PartyTime has suggested. With their "currency" (stock) devalued, however, acquisitions
become much tougher. It's similar, conceptually, to what befell physician practice
management companies (FPAM, CMI, Phymatrix, etc.) 1-2 years ago. Between the
company Westpacific referred to, the one I'm heavily invested in (StayHealthy.com),
Healtheon, and other future competitors that can develop significant revenue streams
other than advertising revenues, my personal opinion is that the Internet health-care
companies that are exclusively "information providers" are doomed, regardless of their
name recognition. -Eric |
