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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: makin_dough99 who wrote (26446)4/2/1999 1:01:00 PM
From: RockyBalboa  Respond to of 122087
 
Recently, private placements in different startups in the techs as well as the internet sector have been offered to me.

All range in the usual approved investor size and came in with viable business plans as well market studies, viability studies theoretical writeups, patents/applications (if any).

I don't condemn it - but coming in on the 1st of April, out of a place called "Safety Harbo(u)r", a solicit to either invest in shares or buy nodes where little is known about: the distribution of traffic, the overall size, and the revenue passing each node makes me thinking.

As a bullish character, I tried to figure out how they want to do it?

-the nodes can be small "counters" in switches which either count the traffic in bytes or address (node-address) hits on the route an URL takes. The earnings might result from levying a small "fee" on the previously counted items.

As the total internet traffic seems to grow, the sum of the nodes could generate a positive discounted cashflow.

So, an entity having virtual ownership over the nodes can sell the sum of the nodes to the public and realize the present value of the stream of cashflows.

I know a similar model where a financial institution structured a deal with a big town (Berlin, Germany), in which the town's secretary cashed in the prospective Present Value of the fare ticket income for the next 25 years.

C.