Nagesh,
You are absolutely correct. Talk about not having a brand presence.....
HOWEVER, FWIW this weeks e.Health report from Wit Capital has an interesting chart on page 5 presently quarterly traffic figures for 3 (supposed top) Commerce & Content sites, one being MCNS and another being KOOP. MCNS's numbers would certainly impress prospective advertising clients. On the other hand KOOP has been catching up exceedingly fast. Management? Obviously the team at KOOP has grokked the Internet branding game from long ago. Hence the signing up of the good doctor himself AND the AOL deal. They may just be handing over stock to AOL, but in this world (as opposed to traditional business) that does not necessarily hurt the share price, at least for the present (see USWeb). Everybody knows about the importance of branding, as well as acquisitions, for the Nets at this stage. It's been a key force in the share prices of the big ones, AOL, YHOO, AMZN, EBAY, etc.
It's about presence. The market will discount that into future profits in this fast-paced competitive world where the competition is only a click away. I'm surprised that some speculators buy MCNS as a Net play and then compliment the 'conservative' approach of the management when the stock slides. Arguably, their must be elements of conservativism in the scheme of things in the medical world. But another part of the business must be very quick and aggressive, IMHO. I'm speaking as an armchair board member, of course. And that's easy.
Which is why I'll admit, MCNS may come back soon. Ground work has been accomplished. They management has shown it's smarts. I hope they do it.
Wit Capital's research reports: witcapital.com
Check out the interview with Intel's health exec, Steve McGeady.
Cheers,
Bond |
