<<thanks for offering nothing in the way of fundamentals on why Netscape is a bad company.>>
R.C., I have offered fundamental reasons why Netscape is, and will continue to be, a terrible company for the long term investor, but since you either can't read or don't know what fundamentals are let me repeat:
1. Company went from software to search engine, offering no differentiation in a crowded field. LCOS, XCIT, YHOO, NSCP, big deal....I use the local Phoenix newspaper as my home page and book marks for my favorite sites, why do I, or anyone else for that matter need a "portal", getting around the web is simplistic....
2. All these "media deals" are a joke. Look at the one between XCIT and Disney, it basically is a "barter" deal, XCITs' name on Disneys' web site and Disneys' name on XCITs' web site, wow, sounds like a multi million dollar revenue generator to me.
3. Valuation: which company basically has skipped out on recent rally? SEEK. Why? Because Disney actually bought a stake in the company and valued SEEK at less than $16. People will say that the deal was complicated, but complicated or not, Disney wasn't willing to pay much for a search engine. NSCP has a 4 Billion dollar market cap and less than $500 in revenue the last 4 quarters, and as we all know, their business model has changed. I would assume rev's will drop off this Q, YHOO has less than 100 Mill. in rev's over the last 4 Q's, and they are supposedly the big dog. No one will pay the price for NSCP at these levels...
4. Revenue: the main source for search engines are ad revenue. I am starting to hear more about companies questioning returns. Take a look at the web sites for YHOO and NSCP. How much "front page" advertising can there be? There is a limit to an extent. How much advertising will users tolerate? You will turn users off if you kill them with ads.
Now the big joke. The CEO for XCIT claims future rev's will be generated from getting a piece of selling prices from companies linked to XCIT because the purchases can be traced. This may happen to a small degree, but give me a break! If this is the future of rev generating look out below. There are so many ways to set up links for little or no money, and if you look in most catalogues, the web site is posted all over the place. No, this isn't just the opinion of the Vinman, I recently read an article that questioned why companies would pay such fees when it is basically easy to let people know where you are.
OK, RC you can now present your case, but if you are going to tell me NSCP and others are the next "media conglomerates" (joke), don't waste your time...
By the way, I was tagged on the thread for shorting NSCP at 41 9/16, well, I am still short, and the last time I checked NSCP was trading at $37 5/8.
Vinman |
