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 : EFAX.com - easy-to-use fax-to-email technology -- Ignore unavailable to you. Want to Upgrade?

To: Edward Larkin who wrote (8)	2/22/1999 4:26:00 PM
From: Kenneth M. Koff, CPCU	Read Replies (2) \| Respond to of 1197

Anyone know something relevant to investors about Mr. Draper? Also, does his investment to "over 6%" represent much of an increase to his holdings? Thanks!

To: Edward Larkin who wrote (8)	3/8/1999 9:14:00 PM
From: Lloyd Davies	Read Replies (3) \| Respond to of 1197

Efax provides a very interesting service but they will have to be very quick to roll out their business. I don't think that it would be very difficult for Yahoo or someone similar to copy them. They might have a six month head start. They should allow people to choose their area code though because if you know that most of the people that are going to send you faxes are in say Silicon Valley then why would you want a fax number in Illinois. Everyone will have to pay long distance charges which should be avoidable. It may be something to do with the relationship they have with a telco in Illinois. Any ideas anyone on this? Also how about revenue models? How much do you think they could charge per fax for advertising? I think that Yahoo charges up to $100 per 1000 clicks for very targeted customers. So say that efax could charge $50 per 1000 faxes (This could be too high). 2,000,000 customers x 20 faxes per year x $50/1000 = $2million in revenues per year. Multiple of 5-20 times revenues equals a valuation between $10m and $40m. Therefore the stock is currently overvalued. Anyone else have any ideas on this? Alternatively if hotmail could get $200/customer (I remember seeing that number somewhere) why not $50 for efax. Say 2,000,000 customers at $50 each = $100m valuation. Very close to the current valuation. But then again maybe it is 1,000,000 customers or maybe 20,000,000. Before they get too big some other high flying internet company is going to buy them out barring a stock market crash.