Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (17027)	5/30/2002 11:04:39 AM
From: MeDroogies	Read Replies (1) \| Respond to of 19080

I have a friend who has an internet start-up that IPO'd and survived. It is just about to enter into the black (after 2 years). He suspects that stock price growth should follow once people realize that cost cutting has provided huge advantages (even though they have fallen short of all their revenue goals and their market seems to have shrunk). They attribute their survival to rapid and punitive cost-cutting, whereas their (non-surviving) competition did not engage in it as rapidly. Cost cutting does get a bad rap in the US. I believe Tom Peters (or one of those gurus) wrote a book called "You Can't Shrink Your Way to Greatness" or something to that effect. That, of course, is total bunk. The best companies KNOW that occasional shrinkage is a good thing. It's like a war. If your frontlines are too extended, you risk a breakout on the part of your enemy. Cost cutting allows you to find out your weaknesses quickly and address them, while maintaining profitablity and strength. Wall Street just doesn't like to see it that way. To them, it's all about the revenues. The truth is, it should be PRIMARILY about the cash flow and the profit. At some point, based on Pareto Optimality, it costs MORE to generate additional revenue than the revenue you actually generate. Oracle has addressed this earlier than most of its competition. That fact has been ignored and played down.