To: donnacat who wrote (2335 ) 7/13/2000 12:58:56 PM From: Shaw Respond to Donnacat, thank you for the 2020 insight article, for me it clearly portrays the bulk of what is positive about the Exodus story. If you noticed the author referred to the value added aspect, that additional add on services provide. By coincidence the author clarified much of the same points as I was trying to make to Auric earlier today, that being the financial significance of value added enhancements, to the core service product, as this represents future growth. The projected revenue growth numbers mentioned, and improving profit margin numbers, leveling off to profit margins of 35%, are sweet. Also the Global Crossing marriage idea, does seem to contain synergy’s, and benefits from economies of scale, not to mention a very expedient way to grow market share. And maybe as the author suggests, when you consider, Exodus possibly having direct access to Global Crossing's fiber, you see that the total relationship between the 2 companies, could make for a marriage, that was both strategic and accretive, from the get go. Anyway this or other strategic relationships with other co.s, that would be accrete, seem to be the way to go. Of course any diminution in share holder value, due to merger stock swap activity, must be offset by future realizable value added enhancement features, or the like, that could significantly contribute to profits. I still feel though that in addition to the above, there will be some major future use for Exodus's platform that will be the real play that justifies a certain amount of current and future overvaluation. In other words Exodus has secured the beach head in its present service relationship with its customer’s. It is the existence of this relationship with its customers, that will give Exodus first shot at offering any new related high tech services that will come along. Its the value of being in these customer relationships that excites me. Future technology will bring enhancements to Exodus's operation. There most probably is a future related technological in development out there, that will lead to a do able, and highly profitable business. However the facts are that it will only be the Exoduses of the world, that are currently set up with their infrastructures and ongoing business relationships in place, that will be in a position to dynamically capitalize on these developments as they come along. How do you put a present value on being better positioned than 99% of the companies in the world to benefit from major technological innovation in your rather significant area of technology. The article touches on the fact that the larger you build your market share, the greater the barriers to entry become for future start up competition, or smaller competition, that is trying to close the market share gap. It just keeps on hitting me, it is all about being in position to benefit from the future, and the value of that positioning is great, because it is through these existing technologically critical business relationships, that future technological services will be sold, and most assuredly, ones that haven't even been thought of yet.
