Hi Craig - thx for the article. Indeed, concept stocks are a tough nut to crack, be they biotech, internet or various labeled new economy outfits.
I don't know if the stmt "I might play Webvan. I wouldn't touch WebMD" from you or from Mr Seymour, but in either case, I am opposite.
To be begin with, I took the credit of talking a friend of mine getting out of WVAN when it was still double digit. But the reason I prefer HLTH to WVAN, if I ve to choose, is b/c the former is a legitimate concept stock. I mean, sure, there is a lot of risk involved, but the idea is a sound one. There is a lot of inefficiency in the healthcare industries, and if HLTH can remove just a fraction of it, there is a lot of money to be had.
OTOH, WVAN essentially is no better than a distribution service. Worse, instead of leveraging the existing infrastructures, such as local supermarkets, it seeks to duplicate it. Getting people to choose the net over the ph is a uphill battle. Worse, good supermarket chains have great logistics. That is their bread and butter. They ve done it for decades. In effect, it is neither unique nor high margin, and it is fighting with the best street fighters!
Just my 2c
best, Bosco |
