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Technology Stocks : Zapata (ZAP)

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To: RJC2006 who wrote (1156)5/4/1999 12:13:00 AM
From: J.Y. Wang  Read Replies (1) of 1206
 
The geeks rule the world now.

An internet portal has no synergies with a fish meal company. There is no overlap in the businesses. Even if ZAP is the best fish meal company on earth, the management has no advantage in going into the portal business. The Korean economy was trashed because the chaebols would do everything from building ships to building VCRs to building RAM chips. It was/is highly inefficient. That's conventional business wisdom.

I guess the best analogy I can give is in the field of sports. Michael Jordan is the greatest basketball player ever but he was not even good enough to make benchwarmer in professional baseball. Why? Because the skill sets required are different and *the competition is very tough and highly specialized* in every professional sport. The competition is very tough and highly specialized in every business sector.

What would people say if an offensive lineman from the NFL decided to try out for center field in professional baseball, or vice-versa? People would laugh. Likewise with ZAP and the internet.
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