As much as I like Softbank, I've been around long enough to see many "sure things" come and go. <G>. My current view of Softbank is that is has become a solid player in the new sector, the internet, but it is so diversified that I don't expect the ten baggers every year anymore. A two to four bagger this year and possibly the next is about my expectation. That would not be chopped liver <G>. The sheer scale of things requires a super blockbuster every few months and that is too much to expect, even from Softbank.
I was hoping that Speednet was going to be one of these super blockbusters, but I hear that some technical questions have been raised by industry observers. I've been thinking of Speednet as a scaled up Metricom (who is preparing to roll out a 128kbps service soon). I'm guessing that if Metricom can do it for laptops, Speednet ought to able to do it for desktop units with AC power and even up the bandwidth. We'll have to see if they can handle the noise problem. Tepco is concerned with the profit model, but I think that the current high prices for high bandwidth internet service (and phone service in Japan) will make it easier than it might be here in the US.
Softbank is down the limit in Tokyo to $869, which is a little below the last close in the US at $890. It did trade up to $950 earlier in the day in the US. As usual, the price differential over Japan, Europe, and the US seems to be narrowing again.
Bloomberg had this story:
quote.bloomberg.com
China Development Invests in Internet Fund With Softbank
By Chad Rademan
Taipei, March 31 (Bloomberg) -- China Development Bank,
Taiwan's biggest venture capital company, said its board approved
a plan to establish a Japan-focused Internet investment fund in
cooperation with Softbank Corp.
The 22.5 billion yen ($212 million) fund will include a 5
billion yen investment from CDB and a 7.5 billion yen investment
by Softbank, with the rest contributed by other unidentified
Taiwan companies.
The fund will be managed by Softbank Investment Corp., a
company that CDB said it may list its shares in Japan by year-end
and could have a market value of up to 5 trillion yen, according
to a Goldman Sachs Group Inc. estimate.
``This alliance between CDB and Softbank will allow CDB to
more quickly enter into the high-growth Internet businesses and
generate considerable profits,' CDB said in a statement. |
