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Technology Stocks : ESVS vs DCLK
ZULU 0.0001000-50.0%Mar 7 3:00 PM EST

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To: slipnsip who wrote (395)3/3/1998 3:54:00 PM
From: BlackStar  Read Replies (2) of 717
 
This is a situation where you are hoping to help finance the company by buying their stock in anticipation of positive substantial earnings some point down the road. Expecting that the money the company gets by issuing shares will be plowed back into future growth or continuing operations.

Ok, so I had it right. The company earns money once for every share they sell. After it is sold to the principal underwriter it is on the market and is traded as an instrument of finance that holds a value somewhat proportionate to the financial status of the company. The only help I possibly extend the company by buying stock in (from) their company is that the market value of the company may go up and thus increase their financial status.

Did that sound correct? I asked because I saw a statement from an otherwise informed poster that implied something else than the above.

Thanx for laying it out for me in such detail.

Now here is where management is important.. Who is running the ship?? What are they planning to do with the cash??? Are they putting it to work back into the company??? Is management credible

Agreed. If there is no trust in the management the valuation (PE ratio) goes down. I don't think that the books will bring us up to DCLKs level. There are a lot more to an IPO than that. Business plan, cost structure, forseeable problems and their solutions and so on.

My hope is that NETZ grows into it. The immediate future is crucial. I have taken steps to get my principal plus a modest overhead back. I still have a position and I will stay with this puppy until it either is fully grown or is truly terminally ill.

Good luck to all longs!
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