Viking Capital Group, VGCP- Internet play on the move! Message Board

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Microcap & Penny Stocks : Viking Capital Group, VGCP- Internet play on the move!

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To: Sol W. who wrote (382)	3/21/1999 11:38:00 AM
From: SnakeInATuxedo	Read Replies (3) of 588

1. Any response to <<the market is saying in no uncertain terms that the Company has made a grievous strategic error.>> bigcharts.com Note that the price slide had started already slightly before this Press Release biz.yahoo.com indicating that the favoured few already knew what was about to happen and were acting accordingly. The slide accelerated upon the actual announcement and only now seems to be giving any sign of finding any sort of support. 2. Any response to <<it has allowed itself to be sucked into razor-thin margin>> The whole model of PC hardware is based around very thin gross margins; the profits are in software, the "value-add" portion. Go get a wholesale catalog from Merisel or one of the other big distributors. Look at the wholesale price of any piece of commonly used PC hardware. Then see what the "street-price" of that item is at your local emporium, mail-order, or internet-order vendour. Calculate the margin, then realise how many of 'em you're going to have to sell to afford your breakfast box of Wheaties. You'll be grateful there are insane people who for some reason want to be in this business. 3. Any response to <<obsolete-five-minute-from-now hardware side of the game>> You're right, five minutes was hyperbole; I should have said 15 or 20 minutes. Sol, you don't seem to have an historical perspective on how quickly the life-cycle of computer hardware is turning over and the pace is accelerating, not slowing. The Pentium III is barely a month old and it's already obsolete. Only companies that have the capital structure to make up the cost of obsolescence by providing some value-added service or functionality can stay in the game. Viking isn't one of those companies. Maybe if they don't make any more stupid moves such as the one we're discussing, they'll survive in spite of themselves. Those long need to fervently pray for such an outcome. 4. Any response to <<set the Company back at least 2 years.>> They've shown they don't think a business deal through carefully before entering into it. Should they be smart enough to recognise this mistake and set about to correct it, the effort to extricate themselves through the legal process will take about 2 years. And during that time, their attention will be focused on said extrication, to the detriment of building what they had hoped to build. I reserve the right to use any appropriate adjective I deem suitable in conveying my opinion of a situation or circumstance, your gratuitous aspersions notwithstanding. Have a nice day.

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