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 : Metromedia International Group (MMG) Looking for Opinions -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (84)	11/17/1997 6:22:00 PM
From: TheSlowLane	Respond to of 353

Hmmmm...that could be difficult. From my very impoverished understanding so far, it seems that they are buying lots of potential. In other words, they've buying chunks of spectrum and small companies that are just getting started. The upfront infrastructure costs will be huge, as is the potential. But, as these services are not readily available today, how do you accurately estimate the subscription rates, etc. that will follow availability? Hopefully someone else will have a more informed answer...

To: Madharry who wrote (84)	11/17/1997 8:31:00 PM
From: Alejandro	Read Replies (1) \| Respond to of 353

That was the thrust of my earlier post. I intend to get that info. There are two ways to look at this. I know what I want to say, but can't find the proper analogy. Let me try, but consider I'm groping. Let's say that Microsoft, with billions of revs and millions of profits, has an engineer who discovers the greatest mousetrap in the world. I mean, mice within 50 yds will die. Microsoft sells them around the world at $5.00 each. The traps are a tremendous success. However, the profits from them only add 1/8 of 1 % to the Microsoft bottom line. This supposed great invention would not impact the Microsoft shareholders. Apply this same ridiculous analogy to a small company and the profits of the trap could have a major impact on the bottom line and stock price. Now with MMG, we have to find out the percentage of profits, and the growth of the individual segments of this conglomerate. Then, as experts :-), we must guess not only how the wireless is marketed, it's potential in Europe, but also how much the wireless will affect the bottom line and when !! Hell, after reading that assignment, I scared myself. This is an interesting opportunity. As a newcomer to this thread, and you overlooking my temporary ignorance to the particulars, the investment by Kluge should be looked at in the same way as if Warren Buffett was in it. Now Warren Buffett is---------------you don't really think I'd do that , do you ? ac