To: David Browning who wrote (790 ) 7/21/1998 4:50:00 PM From: M. Frank Greiffenstein Read Replies (3) | Respond to of 2752
Mostly agreed, but... David, thanks for more information on Ronning and Co. Why didn't you post about this earlier, LOL, we could use poeple like you here. I agree with you 100% that the investment story has changed. The reverse split, the disappointing small increase in gross revenues (I did the math in an earlier post), the appearance of trying to hide this disappointing increase (they posted 6 month figures, not quarterly), increase in G&A and the large # of DRIV options dissapoint me. In fact, I was tempted to sell into the gap up yesterday morning. However, I decided to hang on for good reasons: #1 I am using other Internet stocks as a yardstick. If Internet companies with floats/SO/options similar to DRIV can rocket to the stratosphere, why not DRIV? It appears to be in better shape than a number of these companies. Look at WAVX, another e-commerce "enabler". They have ZERO revenues and have failed to execute for 10 years, they have SO above DRIV's, yet the stock is clinging to the 4-4.5 level just on promise. DRIV is succeeding in their buisnes model as we speak after just 2.5 years of operation. Of course, the ocutnerargument is "Well, WAVX is just more overvalued than TSQD". Yes, but perceptions are everything in the market, and the perceptions of DRIV remain positive. #2 Building anticipation. Poeple are starting to use the word "hot" in conneciton with DRIV IPO. More and more business writers are mentioning DRIV as a closely watched IPO. #3 Future revenues. DRIV recently signed up some high traffic Webstores, including Dr. Dobbs Journal. KCGiant (a software developer for a national organizaiton he has not given me permission to name) tells me Dobbs Journal is a much valued resource for software libraries. I see higher ESD sales at a place like that than with the average software consumer. #4 Foreign sales. Per the S1-A, 31% of sales are to foreign countries. With the recent opening of the London office, this should increase. I am expecting more announcements as we draw closer to the IPO date. Usually the best are saved for last. Although disappointed, I see good support at $4.65 for reasons outlined by Wade Ramey earlier. If DRIV only goes off at $12, 4.65 is a good bottom line price. I think we will be OK. DocStone