PSIX up 26.5%, Takeover(?) Message Board

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Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 60.00

-1.9%

11:46 AM EST

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To: bob zagorin who wrote (1983)	2/10/1998 3:56:00 AM
From: Rob Norwood	Read Replies (2) of 5650

Mindspring fourth quarter results Press Release - biz.yahoo.com Notice two things - 1) In large markets, Mindspring is building its own POPs 2) They seem to indicate that Gridnet is now their preferred network supplier. 'If PSIX still provided consumer service, perhaps their price would now be $42 a share' is a risky statement for two reasons - 1) For PSI to succeed in consumer service, an additional large infusion of capital would have been necessary. PSI completed a second offering of stock two years ago at a price which was near the peak all-time value of PSI stock. This was not a move they could have pulled off again to fund a money-losing consumer division. Mindspring, however, had its IPO after it purchased PSI's consumer divison. In this way, Mindspring had an advantage where it could raise capital and devote it entirely to the development of an 'unprofitable' enterprise. 2) Consumer Internet service is more labor-intensive than business Internet service. It is probable that Mindspring is more effective at managing call centers and large teams of workers than PSI.

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