Internet Company Shakeout? Now, There's A Novel Idea...
Let's see, so it takes a great analyst to tell us
that there is going to be a shakeout among the current
players on the Web... ?
(I assume this great analyst would NOT have issued
a buy signal for KTEL and a price target of $100, right?
But, memories are short, aren't they?)
Look, it is beyond obvious to say that some of the
current players will be bought or merged into larger
entities. But, comparing the Web craze to the biotech
craze is SO WRONG ON SO MANY COUNTS it borders on the
absurd. The Web run-up has certainly been frothy and
and unfathomable and maybe even fraudulent in a few
cases. But, the biotech industry had lots of overlooked
structural, financial, regulatory, and research obstacles
that have made and will continue to make progress agonizing
and "burn rates" staggering. All of these factors
brought biotech to its knees... a condition that it is only
now starting to recover from.
But, the Web, especially in the light of recent comments by Gore and Magaziner, ain't
gonna face some of those VERY DAUNTING impediments. For
sure, there are infrastructure
limitations (i.e. bandwidth), financial concerns (i.e. making a
profit or even finding a working business model to
position your site for profitability) and competitive
issues. All of these are important. Competition being
I think the biggest imponderable...
But, let's focus on SEEK, shall we? We are heading
toward profitability in Q4... if not sooner. THIS
Web company has figured out a workable business model... with
revenue streams from CPM-based advertising, transaction
participation, and revenue-sharing arrangements PLUS
sales of it award-winning UltraSeek server product.
And in the coming days and weeks, we will see new
announcements focusing on e-commerce arrangements,
service enhancements, etc.
So, let's tar all WEB companies with the same brush.
Let's trot out silly--and I do mean--SILLY analogies
comparing the Web craze and the biotech craze. Or, better
yet, let's offer up some chestnut about Commodore and
the PC industry. All in all, it sounds like sour grapes
from an analyst who missed the boat earlier this year
and now REALLY hopes that the boat will now run aground.
Or, best of all, let's talk specifics about THIS
company and its opportunities, revenue growth, global
presence, new deals, new content, growing eyeballs...
etc.
I would really welcome that kind of discussion.
Best Regards,
c m
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