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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (3262)	10/1/1998 11:59:00 PM
From: F. Lynn	Read Replies (2) \| Respond to of 4634

Well, if one were willing to entertain the possibility that DTLN is not going bankrupt imminently, then one could argue that the cash flows associated with the business are recurring and relatively predictable, like a cable company. This does not go to the issue of customer retention -it assumes that the company will be able to retain customers. Within the framework of that assumption, standard corporate finance theory would tell you that this business can support a level of debt similar to other companies with recurring cash flows --like media companies. I was not arguing that it should be valued like one-- only that the debt level of DTLN was not high in comparison to other media companies. I would be more interested in seeing further info on another area of DTLN: namely, its comparative advantage. A friend has recently emailed me a voluminious list of online sites where free agricultural futures prices are available. So can DTLN charge $60 a month? They must be offering something worth money. I mean, keep in mind, companies like PC Quote charge $150 for real time stock quotes, even though you can get them free elsewhere, because they offer them in a format deemed more useful. So I would love to know how DTLN accomplishes a similar "value-add." Of course, this is all a moot point, since Schwab has no shares of DTLN to lend.