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Technology Stocks : PUMA Technology -- Ignore unavailable to you. Want to Upgrade?

To: Eric Mason who wrote (829)	1/17/2001 10:40:19 PM
From: kilo_watt	Read Replies (1) \| Respond to of 851

I guarantee you that Puma paid Yahoo! for this deal, it's just a question of how much. Yahoo! is definitely NOT forking over the dough. The way this is probably structured is that Puma pays Yahoo! some ungodly sum and for the privilege gets to "capture" the users that come their way via the deal. Then they can offer service upgrades, throw advertising at them, etc. This would be a pretty typical Yahoo! deal if it were this way. If Yahoo! was actually paying Puma for this "service", it would be unheard of. The question is: how much did they have to spend (you notice Starfish TrueSync is also a sync partner, but do they get premier billing or the big press release? Wonder why? They didn't cough up the big cash) and how does that impact their cash flow? I've heard rumors that Puma only has like 6 mos of operating capital left, and $4mil (my guesstimate) would be a big chunk o' that. Of course, the impact on the stock has been very favorable, but you can't really use it: the market cap is too low to swing important acquisitions, and now that it's basically 50% higher, has become more expensive from a being-acquired standpoint. That leaves the biggest question: who is going to acquire Puma? Wonder if we'll see any insider selling following this press release fueled runup? What is management doing to get this stock back up???