SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SmarTalk (SMTK)
SMTK 1.060-10.9%Dec 31 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JFTRADERS who wrote (237)1/8/1999 1:39:00 AM
From: Noblesse Oblige  Read Replies (1) of 283
 
The company should turn? Hardly.

The company has *bought* market share by giving most of its "distributors" up front payments to get its cards out in front of the public.

And, if they can't afford the up front payments when the contracts expire, do you really believe they will keep the accounts? No chance. Smartalk's market share will end in the hands of other card sellers with different business models...

...consumer prices for Smartalk "minutes" are well above industry comparables. And, they have to stay that way so Smartalk can recover the up front money.

The business model won't work. These guys are history. There is no reason for anyone to buy them, because their customer relationships aren't sufficiently steady.

It's all over but the shouting.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext