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Technology Stocks : Webvan Group (WBVN) -- Ignore unavailable to you. Want to Upgrade?

To: kilo_watt who wrote (182)	6/21/2000 8:37:00 AM
From: CMon	Read Replies (1) \| Respond to of 464

<<I'm just curious if anyone has anything negative to say about WBVN?>> Well, yes. Investing isn't about choosing which companies services you are impressed with, or which ideas you find neat. Yet this seems to be the tone of the fans of WBVN onthis board. It's about finding good business models that are also offered at cheap valuations. WBVN carries a $2.1 billion market cap. Its core business, groceries, operates on tiny margins. Its last mile delivery concept is an enormously complex business that will face competition from established, well financed competition whose infrastructure in place and ability to expand will insure small margins at best. WBVN's future financing requirements, when they surely do arrive, will likely be very expensive funding from the perspective of current shareholders. You believe that you have found a company with an exciting business opportunity. I think it's a low margin competitive business. Nevertheless, given your judgement, one has to then ask: what's it worth today? At it's current very generous market cap, my opinion is that flawless execution is more than built into the stock price without any appropriate discount for risk.