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Technology Stocks : RRRR: Rare Medium Group (soon to be) formerly ICC -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (54)	1/15/1999 12:18:00 PM
From: Mahatmabenfoo	Read Replies (2) \| Respond to of 1150

> Look at any service business...architects, lawyers, . Ah, that's exactly my point: those sorts of service companies -- which only earn what they can get per hour, so they never get very rich -- never go public. There's no point -- no way the capital raised in a public offering can be used in a way that will increase profits. > Rare Medium is sought after. Sure. They doesn't mean it makes sense as public company, or that owning many local website developers makes sense as a business model for a public company. > Your comparison between Rare Medium and > pharmaceuticals is like comparing apples to walnuts. Exactly my point: service companies like Rare Medium ordinarily don't go public, because unlike pharmaceuticals (and many other sorts of companies) there's ordinarily little reason for them to go public. > Whereas many a great software and internet company > has been started in a > garage or on a home PC...Ever hear of a little > company called Microsoft? Sure, software companies are great: spend money to create product, then sell it many times. But RRRR is, as far as I know, not a software company. Maybe it needs to be. > There are so many amazing and profitable business > models being created for internet traffic and commerce. The reason there are "so many amazing" models is that very very few (almost none) are profitable, outside of gambling and porno sites. And did you know: the number of people who click on banner ads is going down. And RRRR is not even a website looking to create a model of profitability. And it's not an advertising company. It is only a design and management company. > Rare Medium's directors. CEo and personal are very VERY impressive. Struggling or substanceless companies often try to add prestige by adding big names. Hey, I'm a corporate lawyer, I know that strategy. The directors attend a few meetings, get well paid, and that's it. It doesn't mean the company will succeed. Lots of failed companies have prestigious boards. By itself it doesn't mean much. Not that I mean to say RRRR will fail. I think more likely it could be quietly modestly profitable: never dramatically up, and if business declines (which is the downside of having big clients, because it hurts when you lose one) they can always cut employees. But RRRR's profits can never be huge and its expansion possibilities and profit margins are limited -- so if it doesn't change its path (like by selling software, or running a website for itself) it's operations will never justify high multiples in its stock price. > Have you ever owned a successful business? Yes. I have owned the business that suports me since 1992. > I have to pressume that you haven't based on your comments. Tchh tchh. This sort of rudeness is what someone uses when they can't answer legitimate and reasonable question, like mine: where's the synergy in buying multiple website developers? Your only argument is to believe you because you think you're a smart guy, and your opinion is based on RRRR having smart people on its board. Forgive me, I hope, but that's not enough. - Charles