RE: VALUATIONS
For those naysayers who clamour ad nauseum
about the impossibility of sustaining valuation
at these levels here is
the opinion of Ann Winblad,,,,,partner in the
Silicon Valley Venture Capital Group Hummer
Winblad and famous (or infamous) for being
Bill Gates' girlfriend.
Excerpt from this months Money Magazine:
<<<<< Why did Internet stocks go so crazy earlier this year? In large part, she says,
because there is simply an inadequate supply of publicly traded shares. "These are
incredibly capital-efficient companies," Winblad says. Think about the capital
requirements of a Yahoo! vs. those of any other type of business. All Yahoo! has
to buy to operate are a couple of computers, plus a few old pinball machines to
keep its employees happy. Other businesses too are becoming more
capital-efficient by relying on software. "Dell Computer is a manufacturing
company that is increasingly a capital-efficient information company," Winblad
says. "It has outsourced much of its business. It has become the hub of an
information-system process, rather than simply a hardware company." ............
......."We are now using digital tools to
create efficiencies through the Internet," she says. "There is less and less need for
bricks and mortar." >>>>>>>>
JUST4THEDELLOF_IT |
