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Technology Stocks : MindSpring Enterprises (MSPG) Another ISP.
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To: Mr Bones who wrote (1062)6/4/1999 9:56:00 PM
From: American Spirit   of 1434
 
BNBN - the thing is though, if BNBN can't eventually profit, then neither can almost any other major e-commerce company. And if that's true then the entire universe of net companies could start going bankrupt. I do see e-commerce bringing the price of certain goods down. However, in the longrun, those goods will have to be sold at a profit by every company, not just BNBN or Amazon. If books for instance get too aggressively priced then BNBN and others will have to put the squeeze on the publishers. The profit margin simply has to come from somewhere. Otherwise no bank will back these companies, nor underwriter back them, nor investor buy their stock. These people are not stupid and the recent Barrons article about Amazon may have been overblown.

Case in point, I ordered some non-bestseller books from BNBN and they were priced at or near retail. I'm sure they made a profit on those. Plus they make a small profit on shipping. The loss leaders may be the best-sellers, just to hook in new customers.

As in evolution, the market will take care of these problems eventually. In the meantime BNBN is under-priced IMHO. That doesn't mean the market agrees though. I'm disappointed so far but BNBN could start rallying any time.
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