Hi Happy Girl, I did respond to MadDog in a previous post. In respect to some of your comments:
>>There are x number of people who spend x hours on the net. As such, the net can support only so many portals successfully. The industry will reward the first movers.<<
Not sure exactly what was meant here, but as far as the industry supporting first movers, do you remember Sony's Betamax? The first and best video format which came out. And where is Betamax now. This may not be a good comparison as it was a great marketing effort by VHS which ultimately made them succeed over Betamax, something that Yahoo is very good at. But remember, first and best do not always win.
>>Are you saying YHOO shareholders will lose money or YHOO itself will lose money due to dilution in earnings ? I'm not sure I understand this point.<<
What I meant simply that in a takeover, it is the company which is being taken over and their shareholders which make the most money the most quickly. In most cases, the acquiring company loses some of it's price. Long term if it's a good acquisition, everybody wins. Could happen here, but I still think Yahoo is too overvalued to happen.
>>My RR example was to illustrate the brand power and brand loyalty means a lot. I believe RR cars division is no longer owned by RR ? So effectively the car isn't a Rolls. The name has survived with the premium ! The analogy I want to draw is that once established as a leader, YHOO may well survive its competitors.<<
I agree that brand name can get you a bit more for a product than the generic brand, maybe 10-15% more. But not the 500-1000% that can be implied by referring to a Rolls. And believe me, those people who still buy a Rolls don't do so just because of the nameplate. Those cars are still well built.
Bye bye for now
Dave |
