To: Robert B. who wrote (14037 ) 1/5/1999 11:15:00 AM From: cicak Respond to of 44908
Hi Robert - we'll all be watching the Internet Stock Report tomorrow. I've got my fingers crossed. The following is an excerpt of an article by George Mannes dated 1/5/99 which brings up two key points about why I believe TSIG will ultimately succeed : (1) Business Model and (2) Profitability. If TSIG becomes one of the first internet companies to show profitability - watch out ! Regards, Phil ==================================================================== "There's a big what I call dead cat underneath the rug that people trip over and pretend is not there, which is the lack of business models on the Internet," says Mark Stahlman, head of New York media research and financial services firm New Media Associates. "[It] is likely to come to people's attention when they realize what the venture capitalists have already figured out," he says. And it's going to happen in 1999, Stahlman says, "because the venture capitalists figured it out in 1998." Citing the same gap in perceptions between private markets and public money, Cummings agrees. "No question about it, a lot of venture firms and private equity firms are no longer willing to fund 'me too' companies," he says. "Meanwhile, retail investors are chasing after those very same companies in a game of stock-of-the-week." What will happen to public markets when investors change their minds? "It would be foolish for me to predict what a market based on fantasy will do," says Stahlman. Likely, it's a mixture that's enormously volatile. "Stocks that show a promise of early profitability will be absurdly strong," he says. "The handful of anchor investments probably will continue to be strong. And a lot of other people probably will be decimated."