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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Teknvstr who wrote (2006)	2/11/1998 11:52:00 AM
From: bob zagorin	Read Replies (1) \| Respond to of 5650

ceo of earthlink was on cnbc this a.m. explaining new deal with sprint. basically, they will take sprint's isp consumer business along with sprint cash and stake in their business. confirmed telco's now realizing isp's more suited to grow this business. also said, the new sprint backbone will compliment their existing backbone arrangements with uunt and psinet as demand is there. paints a strong growth going forward picture for the entire arena. fwiw.

To: Teknvstr who wrote (2006)	3/3/1998 8:56:00 AM
From: Randy Tidd	Read Replies (2) \| Respond to of 5650

> Bandwidth will be "pushed" by the big boys to accomodate the > APPLICATIONS that they can make money on...so it's not actually > bandwidth per se, but the applications that will enable the Intel's > and Microsofts to ...RUN..!!! and bandwidth is now holding up the > arrival of those applications. My point was that even assuming that bandwidth needs increase, PSIX may not profit from it. PSIX is one of many players in the ISP market now, and others have proved that they are already more successful (i.e. profitable) businesses, have teamed with larger players (i.e. Uunet and WorldCom), or both. PSIX is taking a unique marketing strategy (focusing on the corporate customer and opting not to be bought out), and it isn't clear if this will help them capture some of this market or not. So far it has not panned out. > Randy, try to grasp the concept that it is Revenue that is > important, Revenue and market share...earnings don't mean a damn > thing right now. I've explained all this before as have others...so > I won't rehash it here. It will take a lot of convincing to sell me on the idea that a business does not have to be profitable. Historically, a stock's value increases as the underlying company grows revenues, earnings, AND margins. Short-term movements can be based on other things, but I challenge you to find one stock that has increased in value over 10 years for a company that was not profitable. Sure, if we are in some kind of gestation period for the ISP market, maybe PSIX can stay in the red for a long time and pull out of it with a bang. Or, maybe not. The market is full of stories of companies that missed several chances, got into debt, and floundered. > You know, now's not the time to keep rehashing all the negatives, > when the stock is going up. Actually I disagree. When a company is not making money and the stock is going up, you need to give it a very critical eye to figure out why it is moving. In a broader sense, when investing you need to always re-check your assumptions and look at the company objectively. Or, as they say, don't fall in love with a stock and let your emotions guide your decisions. Good luck, Randy