Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (5054)	10/14/1999 10:49:00 AM
From: Joseph Silent	Read Replies (1) \| Respond to of 10027

From TMF boards.fool.com Recommendations: 3 DocLou: I guess I'm stupid, but this is gibberish. Doc, I tried to explain again today (and spent a bunch of time rounding up numbers). You still don't understand? Let's try one last time. Think of it this way: NITE is like DELL. And DELL, let's say, has two product lines: desktops and laptops. Following me? Now, in desktops, which are a lower margin business, they have a 10% marketshare. In laptops, which are a higher margin business, they hav a 25% marketshare. Together, their overall marketshare of PC's (desktops+laptops) = 17%. Now, let's say that in Q3, very few people bought laptops. DELL maintained 25% marketshare in laptops and 10% marketshare in desktops. However, since fewer people bought laptops, DELL's overall marketshare will decrease. If that doesn't make sense, take it to the extreme. Pretend only 4 laptops were sold in Q3. DELL sold one of them. Thus, they maintained their marketshare in laptops (and, let's say, in desktops as well). But since almost all the PC's (desktops and laptops) sold in Q3 were desktops, DELL's overall marketshare is going to be almost exactly 10% -- NOT because it lost marketshare in either category, but because in Q3, the category that it had a huge marketshare in (laptops) dried up. Now, replace OTC BB with laptops, and do the whole exercise again. If it still doesn't make sense, I give up. And don't ask me to explain fractions either. I have a six-year-old and she's going to get all my time. ERic

To: gbh who wrote (5054)	10/14/1999 11:08:00 AM
From: Bob Kim	Read Replies (1) \| Respond to of 10027

Gary (gbh), Here's something that isn't explained very well. With two weeks left in the quarter, KP said numbers might be a few cents aggressive. Let's use $0.35. There could be a couple of scenarios for that statement: 1) KP didn't actually know the extent of shortfall in the quarter (which raises other questions), or 2) he knew but expected NITE to make up the difference in the remainder of the month. Assuming the second scenario was correct and that the prior 2 1/2 months were somewhat linear in revenue contribution to the actual quarter ($115 mil out of $138 mil), then that would suggest that KP was expecting the remainder of September to generate about $65 mil (to get to $180 mil). Not a pretty prospect. Bob