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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (2501)1/9/2000 5:52:00 PM
From: Razorbak  Read Replies (1) | Respond to of 3543
 
BK Predictions for the 'Nuts?

InfoStream: It's almost impossible to predict in this market. As long as the Street keeps throwing money to these dot.com companies, then they will inevitably survive. Witness Source Media (SRCM). Based on operational performance alone, it should have died long ago, but someone in this heady market keeps infusing cash. Until that changes, the company will continue to tread water.

One thing I can say for certain is that cash is the life blood of any business. When a company runs out of cash, it dies. There are only three sources of cash in any business: operations, investments, and financing. When the last source dries up, and there are no more assets (i.e., investments) to liquidate, the fall-back cash source has to be operations. If a company is generating negative cash flow, then it's burn rate and liquid assets will eventually determine its life expectancy.

When this crazy financing binge ends, "Lordy, hep me!", 'cause there won't be much internal cash flow to pay the bills.

Razor