>>>A company advertises, they pay a fee, and people buy their wares. How is that a zero sum game?<<<
Koop has expenses incurred attracting those advertisers and producing a product. A product, that itself generates no sales. So not only are there costs that are associated with the sales of the advertising, but there are huge production costs.
BTW, this model seems to work on TV for the major networks, but there are some makor differences...
1.if you are a drug-maker, where do you place the advertising dollars right now? And how much does it cost Dr. Koop to convince the advertisers that they are the right place?
2. No TV advertiser is going to set up their own broadcast TV channel. But, Pfizer, etc. can set up their own Web sites to disseminate info.
3. Finally, with all of the competition, what kind of rates can Dr. K charge?
Of course, the quality of the stock and its future has little to do with short-term swings in price. These swings are so profound, though, that even the long-term investor cannot afford to ignore them..
Disclaimer: Got in short at 33 very recently...
|
