Hi Rtev,
A broadband strategy announcement is not enough to rally GNET ahead of FOMC. There is still tremendous perceived short-term downside risk in the general market until 2:15 est 10/5 when we all find out.
Also, the impact of this announcement got lost in its vagueness, allowing poorly fitting analogies with T/ATHM to sprout forth. Nimble, growing rapidly, and cash rich apply to the PA camp only. And the telcom sector has its own competition problems looming.
Finally and probably lost on Wall Street, more ecommerce means more revenues (see last sentence of Horowitz's statement):
"This is a significant extension and formalization of our March 16, 1999 agreement to provide Paul Allen's affiliated cable companies and their subscribers with access to Go2Net's portal services," said Russell C. Horowitz, Go2Net Chief Executive Officer. "We're looking forward to working with Vulcan, Charter, RCN, and HSA to develop content, technologies, and services for broadband platforms.
< This will add meaningful distribution opportunities and reach for Go2Net's offerings and is also an opportunity to extend Go2Net's e-commerce infrastructure to broadband environments." >
Perhaps the broadband strategy announcement jump will come when GNET shows Wall Street the money. YZ |
