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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (12635)	12/12/1999 1:53:00 PM
From: Apollo	Read Replies (1) \| Respond to of 54805

Fair enough.......EXDS expects operating profits, 1st half, 2000.

To: LindyBill who wrote (12635)	12/12/1999 3:07:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

one of my rules is, ya gotta be making an operating profit! That brings up an interesting point in the latest Red Herring. Apprently in the past companies weren't brought to the public market until the VCs had guided them through at least 7 years of existence and four consecutive profitable quarters. As an example, Microsoft had been a going business for 11 years and had many products before the company did their IPO. Because of the enthusiasm of the public markets, the VCs take their money off the table much, much sooner. They do the IPO long before a company makes money and before their product has been sufficiently adopted, allowing them to pass the risk of owning those companies on to the investing public. In essence, the final phase of intense risk used to be held by the VCs while now it's held by those in the public markets. --Mike Buckley