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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (16925)	5/6/2003 10:43:02 AM
From: Bob Rudd	Read Replies (3) \| Respond to of 78516

Started WEBX today @10.45. I like the video conferencing biz despite recent disappointments. PEG is .66 if the growth projections [notoriously unreliable] play out. NYT article today 'VIRTUAL TRAVEL GIVES THE AIRLINES REAL HEARTBURN' highlights how many are turning to video conferencing in general and WEBX in particular to avoid travel to SARS areas. This catalyst could change behavior and hasten transition to more productive VC use going forward. WEBX is the leader in Web conferencing...a more quick and dirty approach that the VC rooms and equipment intensive approach that PLCM takes. A big negative is MSFT's entry via purchase of Placeware. Another is high short position which may be signaling issues I'm missing [I lean towards the camp that fundamental shorts are real good at digging dirt on companies and their presence signals underlying problems]. OTOH, with 50% of float short, they could fuel an advance if wrong. Other negatives: Recent stalling in growth after the post-911 bubble/bounce [SARS induced demand hasn't hit results yet] and heavy option compensation that turns recent earnings negative if factored in. This is a small, highly speculative position more based on my enthusiasm [possibly misplaced] in VC and interest in having a position in the web conferencing leader than in this being a really cheap stock.