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Technology Stocks : USinternetworking , USIX -- Ignore unavailable to you. Want to Upgrade?

To: Bullitt who wrote (468)	8/17/2000 6:00:30 PM
From: Sun Tzu	Respond to of 605

Investor focus on profitability and cash flow. Investors are much more focused on profitability today than at any time in the past three years...and our projected EPS breakeven is well beyond their typical 2 quarters outlook. I'd say this is the single biggest problem at the moment. Personally I think there is a ton of money to be made off the Internet and especially as an ASP. However, it is going to be an uphill battle and will take a lot of stamina. Now since I believe in the concept, as an investor I'd be willing to take a chance on the company if I felt they were financially strong enough to pull it through on their own. As it stands, that does not seem to be the case. As of few days ago, Yahoo stated that USIX had enough money to last for another 5 quarters and that it had a debt-to-equity ratio of more than 1. Those are not the kind of numbers that instill confidence for a concept stock. Incidently, Yahoo has taken those numbers off their page and I wonder if USIX had a say in that. Can anyone on this thread answer the critical questions of what is USIX's burn rate, and when do they expect to break even? I am sure the management has discussed its business plan with the analysts (at least to some extent), but I cannot find that information. In a way investing in USIX is like investing in a biotech. I see good parallels between USIX now and SEPR a few years ago. TIA ST

To: Bullitt who wrote (468)	8/18/2000 1:20:48 AM
From: Rupert	Read Replies (1) \| Respond to of 605

Bullitt> Great post. Thanks. A real insight into how these new tech companies are handling their beaten up stock prices internally. The e-mail really highlighted what I've been saying here...that a stock and the company it represents are two different things, and it is perfectly reasonable to treat them as such. Naturally we think that if the stock goes down the company must suck, and if the stock goes up it must be wonderful. This psychology causes a lot of people to sell their losers at their lows instead of simply riding them out, and as a result throw their money down the tubes. And the financial press amplifies whatever the prevailing trend in the market is, because that's what people want to read. Now the techs are being demolished, we have articles about cash burn rates, and so on. When the tech thing starts back up (assuming it does!), we'll suddenly get the positive articles back. USIX the stock has a chart that mirrors lots of other tech stocks and reflects the market's changing perception and demands. I don't expect USIX the stock to do much for several months, nor do I expect any of the recent IPOs that I follow to do much. Like the e-mail said, the market is currently looking for profits and is unkind to concepts, so we'll have to wait until the tech party gets going again maybe late this year, for the new-wave of Internet infrastructure and app delivery stocks () to show much sign of life. () There's a lot of stocks in this category, but the ones I follow personally include USIX, KEYN, INAP, GRIC, and very recent IPOs STOR, CRIO and EQIX.