<<This is a gross oversimplification of what is a complex business. Yes, in a very broad sense, bandwidth needs have increased and will probably increase over the next few years. But that does not mean that every company that sells bandwidth will make a lot of money!>>
Randy,
No, I think you are overcomplicating a very simple concept. Bandwidth will be "pushed" by the big boys to accomodate the APPLICATIONS that they can make money on...so it's not actually bandwidth per se, but the applications that will enable the Intel's and Microsofts to ...RUN..!!! and bandwidth is now holding up the arrival of those applications.
<<Just because Intel makes fast chips does not mean that people are suddenly going to start spending a lot of money on corporate-grade ISP service, which is what PSIX sells. Intel is focused on the end user whereas PSIX got out of that business a couple of years ago>>
I don't agree with any of this. Intel is focused on All businesses...last time I looked, Intel chips were in corporate computers too. Besides, the main issue as I see it is that PSIX has pursued a strategy that segments ISP service into a completely different area than that of the consumers...the corporate space, that makes them complimentary, yet distinct....thus they are a piece to somebody's bigger puzzle that may be missing..ie; AOL may want to buy them to expand their blue chip status as the biggest ISP.
<<There is a lot of hype associated with internet stocks, but people should keep an eye out and realize that not many people are making money at the ISP business. There is a lot of money in it but it is also an extremely competitive environment without very large margins.>>
Randy, try to grasp the concept that it is Revenue that is important, Revenue and market share...earnings don't mean a damn thing right now. I've explained all this before as have others...so I won't rehash it here.
<<I'm a shareholder of the company to see my investment increase in value, not to educate the management team.>>
I can understand your frustration. Perhaps PSIX went public too early as their model could never show profitability in it's first 3 or 4 years of operation. Dealing in the corporate space requires quality of network construction that takes lots of money, and it will take time to get the critical mass necessary to pay for it all. However, these corporate users will do business, and spend money on the internet/intranet commerce landscape. This is just a very valuable niche.
You know, now's not the time to keep rehashing all the negatives, when the stock is going up. That's just as bad as focusing on the positives the whole time the stock was going down. It keeps you from making money. Makes you hold on on the way down, and sell on the way up!! I do respect your opinion, and understand your frustration. I've been there many times. Remember though: The market is a forward looking mechanism, and seems to be saying that things are finally improving for PSIX. It was saying the opposite for quite some time...we've hit the bottom in this stock. There is no downside here....so just buy it and enjoy the ride....Tek |
