Internet America, Inc. (GEEK) Message Board

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Technology Stocks : Internet America, Inc. (GEEK)

GEEK 0.0400

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Oct 25 5:00 PM EST

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To: KZAP who wrote (179)	12/19/1999 10:29:00 PM
From: Toby Zidle	Read Replies (1) of 220

Oh it will rebound sometime. What you are saying is ultimately true. GEEK will sink. It will hit bottom sometime. It will rebound. The monster question is how low it will sink and how high it will rebound -- and when? There is every possibility that GEEK will fall sufficiently far that the rebound won't carry the stock even back to $8 before the next downleg takes over. We've been in a cycle of lower highs and lower lows for ten months now. Why should next month, next year be any different? One thing on the near horizon bodes trouble for GEEK. Performance speed. There is a new series of GEEK ads on TV that claims Internet America is up to '200 times faster'. Faster than what? When I switched to Internet America as my ISP, it was demonstrably faster than AOL. (Everything was faster than AOL.) It's not that way any more. I rarely get transfer rates faster than 5K. They can be as low as 500 bytes/second in spite of a 56K modem. My wife has seen side-by-side comparisons of downloading the same page from Internet America and from AOL with my daughter's computer. AOL can be up to 20x faster than GEEK. My wife is vowing that when our GEEK contract expires next year, it will not be renewed. The real threat to Internet America in its own Dallas back yard is the installation of cables by ATT@Home. For new customers, free cable modem, free installation, and one month's free service. True, that the monthly rate (appx $42) is quite a bit higher than Internet America's standard phone access fee, but data transfer at 1 or 2 Megs (vs 5K these days with GEEK) and instant always 'on' access (no dialup needed) are going to be awfully attractive. ATT@Home sent out a mass distribution brochure yesterday, blanketing GEEK's home turf. For the first time, GEEK is going to have some stiff competition. Superimpose this over the 52-week-low stock price. I think things get messy from here on out.

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