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Technology Stocks : Data Return Corp. (DRTN) -- Ignore unavailable to you. Want to Upgrade?


To: j.j. jingleheimerschmidt who wrote (54)11/4/1999 11:31:00 AM
From: HeyRainier  Read Replies (1) | Respond to of 178
 
One key factor to look for in an efficient business is its "capital-intensiveness." Capital-intensive businesses may throw off cash, but a majority of that cash needs to get plowed back into the company just to keep pace with the times. The lower the required capital expenditures to run the business, the better.

Which points to an advantage in Data Return's business model:

(from its prospectus)

Our Strategy

Our goal is to take advantage of the growth in Internet usage, e-commerce and the outsourcing of hosting services to become the leading provider of advanced hosting services. Our strategy to achieve this goal contains the following key elements:

- maintain focus on advanced hosting on the Microsoft platform;
- offer a full range of highly scalable advanced hosting services;
- maintain non-capital intensive business model;...

Such an approach has tended to result in higher returns on invested capital.

Rainier