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I subscribe to the street.com., don't read the Wall Street Journal, and have never invested in a mutual fund, hedge fund, 401k, or IRA. I'm a full time investor and manage my own money. I read thestreet because they cut to the chase---not alot of superfluous chatter. Having said that, I don't think they are a good company to invest in: their balance sheet sucks, they're in the hole for millions, their subscriber base is miniscule. But hey, that makes them a perfect internet IPO candidate, right? Nowhere to go but up. This ipo is the only move that makes sense for the venture known as thestreet.com. When you owe lots more money than you bring in, you can either fold, or borrow more money! Given the current state of investor sentiment though, their ipo should zoom. The question is: what will/can they do with the money? What is the intelligent thing to do with capital to foster growth in their little sector? Broadening their appeal will kill the existing customer base. If we want CBS Marketwatch, we've already got that, and for free. Is their revenue stream going to come from advertising or subscription fees? The ultimate and probably quick resolution will be to merge with some bigger entity that can use them as a writeoff. |
