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 : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Olds who wrote (6763)	4/5/1999 10:10:00 AM
From: Thomas Kirwin	Respond to of 17679

PSIX Planning Something Big? Hello, Could PSIX be contemplating buying our little diamond in the rough? Monday April 5, 9:44 am Eastern Time Company Press Release PSINet Announces Filing of Universal Shelf Registration Statement for $1 Billion HERNDON, Va.--(BUSINESS WIRE)--April 5,1999--PSINet Inc. (Nasdaq: PSIX - news), the first and largest independent commercial Internet service provider (ISP), announced that it has filed a universal shelf-registration statement with the Securities and Exchange Commission for the public offering from time to time of up to $1.0 billion of common stock and preferred stock, contracts to buy common or preferred stock and units of common and preferred stock, all of which will be issued by PSINet. The specific types of securities, and the specific terms of the securities, that may be issued under the universal shelf-registration statement will be determined at the time of each issuance. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. When available, a prospectus relating to the securities to be issued by PSINet in a particular offering may be obtained from the managing underwriter for that offering, the name and address of which will be announced by PSINet. Headquartered in Herndon, VA, PSINet is a global facilities-based Internet Protocol (IP) data communications carrier focused on the business marketplace. PSINet offers a broad set of high-speed corporate LAN connectivity services supporting managed security and guaranteed Internet, intranet, electronic commerce, Web hosting services, and services for other carriers and ISPs. PSINet operates an international state-of-the-art frame relay and ATM-based, IP-optimized network consisting of more than 500 points of presence (POPs) around the world serving primary markets in Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, the Netherlands, Republic of Korea, Switzerland, the United States, and the United Kingdom. PSINet information can be obtained by e-mail at info@psi.com or by calling toll-free 1-800-799-0676. Contact: PSINet Media: Reid Walker 703/375-1103 walkerre@psi.com or Analysts: Kelli Harrington-Nemer 703/375-1245 harringtonk@psi.com

To: Michael Olds who wrote (6763)	4/5/1999 10:34:00 AM
From: Carl R.	Read Replies (1) \| Respond to of 17679

On the other hand if the competition goes public and raises a huge amount of cash, while TV-on-the-web tries to stay private it puts them at a significant disadvantage. Right now they must expand their channels at warp speed. They need a video search engine. They need exponential growth in their servers and internet connection speed, as well as near line storage. These things cost money. Patience is not a virtue when playing at this speed. The money from Ampex got them a good start, but if they are growing these things as fast as they need to, they'll burn through that cash in no time. The advice given in Burnell54's post was sound in normal business practice, but doesn't apply when you are dealing with an explosively growing business with a negative cash flow. In that type of business, you need cash to grow, and to establish market share. They can't afford to wait to go public because it will stunt their eventual growth, and perhaps kill the company. They need to go public now, if not sooner. Seriously, the timing of the IPO needs to be such that they can grow as fast as possible, without being concerned about the availability of cash. The market is favorable now, so they need to move fast. Imagine that they wait two months and the market for internet startups collapses. Then they won't be able to get the money that they need on favorable terms. I doubt that the money from AXC will keep them going for more than a few more months. Therefore they are under the gun and know they will need more money. They will need more money, and they can get it on favorable terms today; maybe they can get even better terms in 3 months, but maybe the market will be much worse. Therefore they should go public now and eliminate the risk of an internut collapse preventing them from getting the money they will need to grow. And what is worse, if they can't get money, and the competition already has it, it will be impossible to compete. Carl