Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (92)	12/20/1998 3:32:00 PM
From: art slott	Read Replies (1) \| Respond to of 360

If you own the customers who are they really selling to. Sounds like a Ponzi scheme. Keep inventing sales to produce phoney sales #s so you can sell your stock to somebody who doesn't know you have no real customers.

To: Q. who wrote (92)	12/21/1998 4:47:00 PM
From: NYBellBoy	Respond to of 360

John G. - re your post < As far as serious investing is concerned, I did find interesting the paragraphs describing their business plan. It is a really bad plan. They say that they are not just developing switches, but they are buying the customers for these switches. These customers are small switchless re-sellers of long-distance phone service. Two reasons this is bad: First, re-selling long distance phone calls is a lousy business. In the news release they call these businesses 'emerging'. 'Submerging' would probably be more appropriate. Second, the whole scheme of selling capital equipment to captive customers is lousy. It begs the question, if the equipment is good, why do they need to buy the customer?> Your reasoning is excellent. In addition they don't make the equipment, they are at the mercy of Vendors, Customers and Competitors. They add very little value and incur lots of overhead and headaches. The LD switchless reseller business is consolidating and the little mom and pop resellers are getting killed by bigger firms. The profits is in providing a whole package of services and the cost IMHO, will greatly exceed the revenues. :) BellBoy They are buying their cutomers