Spin as you wish....wish as you spin
I just gave my honest assessment of where I feel
PNL is at now still very early in their development
waiting for their sector (trade), the world (internet
connectivity) and technology (broad band and DSL
increased usage) to embrace PNL's vision. This may
take time, this may happen quickly.
Plus maintaining the value of commercials and web
page placement/affiliate revenues gets tricky.
As streaming video and other more compressed forms
are improved, and broad band or dsl leads to the convergence
of existing media onto the Net, advertising space
will become further diluted. Simply users won't
just have ABC , CBS, NBC and cable, they'll
have the whole world to watch and listen to.
PNL has to continue to move quickly to carve out its
niche in this marketplace. But IMO its ability to do
so and dependency on advertising revenues entails
a lot more risks and unfortunately PNL's prior revenue
model just isn't in sync with people relunctance to pay for
content (not consumable goods)that they willing
seek out from various free sources.
Maybe those attitudes will change.
Regardless, PNL is still just starting up and a look at its balance sheet and operational history is only a
partial exercise in an assessment of the b-plan.
GZ has made many overly (grossly) optimistic projections
not becuase he was being untruthful, but because he
really believes in what he's trying to achieve.
GZ may achieve his dreams and obviously with PNL's
model, JP, GZ and Walker are in for the long term.
Access to financing, if that is the "big" forthcoming
news will alleviate the stress of worrying how to keep
the doors open to next month.
PNL has been successful in keeping its burn rate low
relative to other Inets, and this fiscal prudence
along with the ability to draw down as necessary
from an IB will hopefully allow PNL a long enough
runway to both fulfill its goal and let the rest
of the world catch up with it visions.
As is wont for unnamed others to do, I could revert
to extremes and write something like PNL's
filings are "atrocious" and "GZ lied". But that simply
isn't my style. I'd rather get up to speed with
where a company is and how it intends to get to where it
wants to be. I find history relevant, but I don't
continually lament over mistakes that all young
companies make. (Anyone remember Proxicom?).
ANyone expecting to see PNL "pop". Good luck.
IMO the tulip bulb days for this INETS has passed
just like with biotechs in 92. Now many of these same
companies will have to demonstrate via their b-plans, not
only the ability to generate revenues, but actually
make money i.e. earnings.
PNL , to me, is a long term hold. Like I said
I held onto some shares that just sit in my ROTH.
I sincerely hope that PNL, one day does become a gorilla
or a real niche player. But I'd also advise anyone
to look closely and realize that PNL may just be another
great unfulfilled idea despite every well intentioned
effort.
That's business. That's life.
Sincerely,
z
FWIW. This will be my last post on this thread
until my present feelings about PNL improve. Feel
free to disagree with anything I've written. I
however will not reply or argue with you. So
please do not reply directly to me filling up my inbox.
Thank you in advance. |
