Good morning everybody....been working this weekend as we interview the new crop of prospective surgical interns....
For those who have an interest in Exodus Communications, please see my prior summary post. The summary was very long, but I figured since web-hosting was so murky, I would spend some time trying to help people understand it. Much of the comments in that post, are being reiterated this past week by analysts, all of whom are busy upgrading their Exodus recommendations. From the SI EXDS thread, this news from a Fund Manager interviewed on Wall Street This Week:
To: LLLefty who wrote (1645)
From: William F. Wager, Jr. Saturday, Dec 11 1999 3:14PM ET
Respond to Post # 1646 of 1648
Wall St. Week with Louis Rukeyser...fund manager Chris Ain-
ley of the TCW Galileo Aggressive Growth Equity Fund +106%
YTD, with $8.5 billion in assets, said on the Friday pro-
gram, that Exodus is his first choice in the Internet sec-
tor for appreciation. He has owned it in the fund since $17
a share (he has held Yahoo! since $4). He said that traffic
is growing 18% per quarter and meets his four rules for an
Internet company:
1. Subscriber acquisition cost is going down;
2. Revenue per customer is increasing;
3. Operating margins are up and;
4. Return on capital is increasing.
Wall St. Week is the most watched financial TV program in the country. Talk about free publicity.
--Bill <vbg>
Exodus is a King or Godzilla. Mike Buckley made a very helpful post about distinguishing the godzilla, ie looking for whether Exodus benefits by reaping revenues from the networking effect, ie do they get paid per website hit, or in some such fashion? I will explore this with Investor Relations; we'll see if they know the answer, or return my calls.
I also note above that "traffic is increasing 18% per qtr", but I know that EXDS revenues are increasing 40% per qtr (59% this most recent qtr). Does this mean their market share is increasing??? Increasing market share was a very key metric on the Godzillas in the RFM, as was revenues.
Apollo |
