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Technology Stocks : NetZero Inc-(NZRO)

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To: Mohan Marette who started this subject1/6/2001 9:00:05 AM
From: KyrosL  Read Replies (1) of 513
 
Barron's article on cash burn rates

Article is titled:

"Burning Down to the Bargains

Even as 'Net firms burn cash, smart investors smell opportunity"

Talks favorably in general of Internet firms that still have plenty of cash to last enough time to reach cash flow positive.

Somewhat misleading, since it does not take debt into account when calculating time to burnout. It just takes EBITDA and divides into cash. Still, NZRO (with no debt) is #188 in the list with 28.6 months to go. JWEB is #79 with 7.6 months to go.

Because the list does not take debt into account, there are some glaring errors. For example, PSINet is shown as #258 on the list with 172 months to go, but because of its huge debt load it will run out of money in less than 6 months unless it cuts back drastically on investments and/or sells some of its businesses.

interactive.wsj.com

Kyros
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