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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (2968)	4/10/1998 11:04:00 PM
From: Frodo Baxter	Read Replies (3) \| Respond to of 9256

It's easy to start one of these babies up. Go back to our discussion of our little money-printing business. With enough startup capital, you jump right in the game and turn a few bucks. It's easy enough to show a "profit," cuz there's no depreciation yet (all your machines are new) and you amortize your R&D. The trick isn't to get in there with external capital, it's to have a strong enough balance sheet to finance growth internally. Otherwise the endgame is consolidation, dilution or bankruptcy (my predictions: RDRT, HMTT, APM, respectively). Is there any manufacturing company in the industry which can actually finance its own growth? Intel. But then, heck, that beats the business model for the telecom biz: a) raise capital (helps if your name's McCall or you used to work at T) b) build fiber/wireless/bandwidth c) consolidate industry (vertigo at outrageous buyout prices can be rationalized by looking at your own ridiculous valuation) d) lose money e) repeat a-d. fastest wins.