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Technology Stocks : USWeb (USWB)

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To: Orwell who wrote (1182)2/20/2000 12:28:00 AM
From: MrBuzz  Read Replies (2) of 1188
 
Sorry, but this one I feel is heading way lower

Currently, there is little shareholder value in this company especially since the acquisitions and intangible assets are accruing faster than the entire revenue stream for the year. For a young growth company, this is too fast, too soon.

Pooling intellectual property does not always translate to better products and profits. Management, information integration and the sharing of technology amongst every USWeb office is important. In the fast paced world of ever changing technology, maintaing information flow and synergy amongst each office would be difficult to pull off. Let alone the resources also could grow stale too without proper training. This is different, than say a product that maintains the same quality and ingredients (like a McDonald's hamburger).

Technology changes, and especially in a content production environment, staying on top of things is essential to keeping ahead of the competition. Loss in clientelle is very much a concern and adds risk.

Building shareholder confidence is important at this stage -the acquisitions would need to reflect itself very soon on the financials or you can expect to see a stock fall back sharply. Companies that have problems making profit usually do. This one could be heading to $15, and possibly $7 in the road ahead.

MrBuzz
whats-the-buzz.com
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