To: Daniel Simon who wrote (30393 ) 12/17/1998 11:33:00 PM From: David S. Read Replies (2) | Respond to
Overheard at Oppenheimer..."Well, we have to make a statement. We're really not very visable in this internet space. Montgomery, Robbie Stephens, and 1st Boston are getting all the deals. And since Goldman lowered their standards for doing IPO's by dispensing with the revenue and profitability hurdles, even they're doing the internet deals. What can we do?" - "Well, valuation doesn't matter, so just pick a number, use whatever discount rate and go out enough years in the future so that whatever you say, it's harder to knock it, since who knows what'' happen in 18 months, let alone a couple years, with all the changing technology and everything". "Huh, you think so? You mean, it'll be OK" - Yeah, what the hell, it's Christmas anyway". - "Well, OK I guess - How's this sound - I'll pick $400, and say that includes categories of stuff Amazon doesn't sell yet. I'll assume profit margins for ...well, I don't know what they're going to sell, but oh well, who cares, so anyway they're going to make money when they sell whatever it is they are going to sell - or else they wouldn't sell it, right? Of course! So the books is just to get the model down so that they can make as much money selling the other stuff as they make on books. How am I doing so far?" ...."Whoa, slight problem there...they don't make any money on books." - "OH, hmm...well, then there's the opportunity to make it on other stuff. You told me to be bold and make a statment so I'm being bold." ---"That you are - lucky nobody cares about this crap, anyway."
