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

To: Heather who wrote (483)	4/25/1999 10:03:00 AM
From: Anaxagoras	Read Replies (1) \| Respond to of 1150

Hi Heather- <<Forgive me if I'm abit [sic] confused but shouldn't we be more over whelmed [sic] by the huge market cap of some of these other internets vs rrrr.[?]>> Let me make a few things clear (I hope!). A reasonable short argument here is not the typical "Overvalued!" war cry you hear when bears try to overwhelm the citadel of the 'nets. Most of the nets are overvalued on traditional models, but that doesn't keep me from longing them- as I mentioned before, I learned my lesson about shorting nets on overvaluation a couple years ago with YHOO- don't do it unless its for a quick trade on technical like merits and with stops in mind. So that's not really the issue here. It's that this company not only is ridiculously overvalued, but the reason it has run up is pie-in-the-sky dreams at this point, and the company has a crappy pedigree. They have done virtually NOTHING to suggest that they will be a success! This is third rate internet hype at a very late stage in the game. In the next post I'll give a brief synopsis of a few of the pillars of a short's argument here (in ADDITION to the overvalued call). Anaxagoras

To: Heather who wrote (483)	4/25/1999 10:27:00 AM
From: TradeOfTheDay	Respond to of 1150

Heather, this is the reason we are concerned about a lower market cap on RRRR being "overvalued" - not "undervalued" in comparison to other net stocks : ( keep in mind , that I know the head cheerleaders on this thread will say BUT THAT WAS 4 MONTHS AGO - BEFORE THEY FIGURED OUT HOW TO REINVENT THEMSELVES) please note the date of the KPMG report. from their own auditors - <<Independent Auditors' Report The Board of Directors and Stockholders Rare Medium Group, Inc.: We have audited the accompanying consolidated balance sheet of Rare Medium Group, Inc. as of December 31, 1998 and the related consolidated statements of operations, changes in stockholders' equity (deficit) and cash flows for the year then ended. These consolidated financial statements are the responsibility of Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The consolidated financial statements of the Company as of December 31, 1997 and for each of the years in the two-year period ended December 31, 1997 were audited by other auditors whose report, dated March 20, 1998, on those statements included an explanatory paragraph that states that the Company has incurred losses accumulating to $54,184,410 through December 31, 1997, which raises substantial doubt of their ability to continue as a going concern. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Rare Medium Group, Inc. as of December 31, 1998 and the results of their operations and their cash flows for the year then ended in conformity with generally accepted accounting principles. The accompanying consolidated financial statements have been prepared assuming that Rare Medium Group, Inc. will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered net losses and losses from continuing operations, has a working capital deficiency and has incurred accumulated losses through December 31, 1998. These factors, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. KPMG LLP New York, New York March 29, 1999>> quote.yahoo.com thanks to Razorback