To: AugustWest who wrote (267 ) 10/27/1998 9:31:00 AM From: Platter Read Replies (1) | Respond to
Could VRSN be another CYCH..see article from Briefing.com.."CYBERCASH (CYCH) 8 1/4. Not a major stock anymore, but just one of many examples out there of a once hot Internet stock that was going to change the world - but never made it past the concept stage. After the close Monday, electronic payment company Cybercash (CYCH) reported a third quarter loss of $0.51 per share. It doesn't matters what expectations were, CYCH loses big money every quarter. Originally, that didn't matter. The stock shot to over 60 after the 1996 IPO and the company had a market cap of almost $1 billion. CYCH was going to be the payment system for Internet commerce. That was concept with huge potential. It never happened. Since 1995, CYCH has lost an average of $2.20 per share each year, and they are on pace again this year with a loss of $1.72 per share so far. They regularly face the need to raise more cash. Revenue may hit as much as $10 million this year, but that is only because they bought a real company with a real product last year. The Internet payment system simply never happened, and a lot of investors lost a lot of money as the stock slowly faded. Briefing.com brings this up to remind readers that many of the stocks caught up in the current Internet stock craze are also concept stocks. Some, like CYCH, will never turn into profitable, solid businesses. Some will, of course, turn into hugely profitable businesses, like AOL or Yahoo (still on Briefing.com's core investment list). But there are also a lot of stocks that are simply being drawn into the hype. We aren't trying to rain on the parade that is providing excellent opportunities for traders. We just feel a reminder is also helpful."
