Tulipomania Blowoff Contest: Why and When will it end? Message Board

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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end?

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Jun 26 5:00 PM EST

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To: 10K a day who wrote (3197)	11/17/2000 10:31:37 PM
From: RockyBalboa	Read Replies (1) of 3543

One point is that all the businesses did not earn any money even in this favourable economic conditions... what remains is the huge debt load which is no longer convertible into equity that easily. They would have been better off when they threw out a 2ndary offering right at the market top (many other companies did, and with minimal dilution). Looks like a proxy case what happens to debt laden companies including AMZN sooner or later (and the business plans appearently don't include generating cash...) Add to the debt the nonperforming customers (see problems COVD has with its revenue realisation...), and this big soap opera gets very toxic. Some even worse companies, like ICGX went bankrupt, and there are people openly talking that a suitor could buy PSIs remaining assets for .50 on the dollar (and not bid for any equity), ... For traders, a DCB is possible when the selloff of the pledged shares is finally done.

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