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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 143.95+5.4%Dec 8 3:59 PM EST

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To: levy who wrote (16065)1/17/2000 1:05:00 PM
From: Pareto  Read Replies (4) of 28311
 
we better be a bit cautious over profits.

Yes, the GNET business model focuses on LEVERAGE, generating higher margins as revenue increases.

However, we are still in the build-up phase of the business and in this phase it might be much wiser to invest heavily in growth of the customer base, product development and infrastructure.

So, earnings might as well be just 7 cents. For me the most important points are revenue growth and revenue sources.
- Revenue was 9,7 million in the last quarter. Now they get 13 or 14M?
- Do we still earn most on banners or is Hypermart generating a commission fee on the transactions?

To me gnet is not just another portal. It's core competence is the development of web based applications to be used by multiple users. We have to focus on the elements which are common in 'the network of branded sites'.

GNET is leveraging technology, not the visitors to its sites. Not many SI's will use playsite. Few SI's have a hypermart-site.

The development and day to day operation is still in its early stages. Remember the recent changeover of classic SI. And we hear for several months that the transaction system for Hypermart is about to be launched. It may take easily another year to have those systems work as desired. But then the potential of GNET becomes much larger, than it may as well enter the B2B area or any transaction based environment.

The area of broadband is even more in the development phase, here we will see only cost and no revenue yet.

Regards,
Pareto
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