To: John Madarasz who wrote (1428 ) 12/21/2000 4:30:44 PM From: Sam Respond to john,finance their growth by selling stock, yes. And yes, they filed for a secondary a few months, when the stock was triple what it is now, because they saw large opportunities ahead of them. It is hardly uncommon for a company growing like a weed to need financing from the secondary market--exactly what purpose do you think these markets serve? This isn't like a I-nut company (and certainly not an incubator company like CMGI) that is financing their revenue by attaching a 10 dollar bill to each product that they are selling for $20 (see, e.g. Lexar, a flash card company, for an example of that sort of company). If their SEC statements are legit--and I have no reason to believe that they aren't--then they have been making good money selling their products, and reinvesting that money back into their business, like any business that is growing rapidly should. You may argue that they are trying to grow too fast, and maybe that is so--certainly that is the disease that has afflicted a lot of companies over the past few years with disastrous results. But to say that they make their money by selling debt and stock is wrong.
