Sorry, but the only route for this stock is failure. Why? Well, simply because once the advertisers realize that no one is seeing their ads, then they will stop funds to Netzero. I suspect this has happened already. This means, sooner or later, Netzero will end up with zero. This is what happened to the last two or three companies who tried the free Internet route in the US. Yes, they went bankrupt.
As many have already heard, little young hackers out there have developed numerous applications/tools which allow people to use Netzero to access the Internet without ever seeing a single advertisement. These tools are being distributed for free through out the Internet. People who were able to find netzero find those applications the same way. I'd like to get my hands on one of those tools.
Think of it this way, if you were an advertiser, would you pay thousands of dollars for ads that might never get seen? No, you wouldn't. If it does get seen, then it gets seen by people who want things for free.
The smart buggers who are developing these hacked tools work faster than Netzero could ever keep up with. This is a problem with the Internet service it self. People are developing things all over the world, and at numbers larger than the company can afford to protect against.
Now, if a company that already has a great product/service were to begin providing the Internet access for free, then it might be a success. I think that kind of company might be able to pull it off, since it would be making money off its product. This is basically what is done in Europe. |
