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Technology Stocks : Network Solutions (NSOL)

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To: Mike Gordon who wrote (1185)6/5/1999 5:11:00 PM
From: Boon  Read Replies (2) of 1377
 
Still Negative On NSOL

I have been negative on NSI's fundamentals ever since NSI indicated it would fight Commerce and ICAAN over ownership of the "white pages" -- the registry of now 5 million names of domain name holders. NSI reportedly is claiming ownership of the registry and the consequent sole right to market the list. That, at least, is how I understand it.

NSI probably will, and should, lose this battle. That registry of domain name holders is as close to a public good as it gets, it seems to me, especially when one considers that the registry was developed by NSI while serving as the sole register under a cooperative agreement with the Commerce Department.

It appears as if NSI has decided it can't compete unless it protects as much of its crumbling monopoly as possible.

That's a lousy strategy, in my opinion. NSI should concentrate on competing more effectively rather than on spending its time and energy on finding ways to keep its monopoly.

Let's see if its new president has some vision. I'm not holding my breath.

Sorry to be so negative. NSOL has been very, very good to me, even though I gave perhaps 25% of my NSOL trading profits back in NSOL's recent slump. I'm out of the stock entirely.

I don't plan to get back in NSOL unless and until Network Solutions demonstrates that it has a competitive strategy and the ability to execute it. So far, I see only a failing grade on both counts.
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