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Technology Stocks : USWeb (USWB) -- Ignore unavailable to you. Want to Upgrade?

To: joshi who wrote (877)	5/13/1999 1:45:00 AM
From: Rick	Read Replies (1) \| Respond to of 1188

Continued thoughts: This excerpt is from SmithBarney Research: <<The company's share count increased significantly as a result of equity issued for acquisitions. Continued increases are expected as stock bonus shares vest over a three-year period, and further employee options are issued. We expect the average diluted share count to increase from 69.6 million for 1998 to 90.9 million and 106.8 million for 1999 and 2000, respectively.>> This is one of the major problems for investors in this type of financial rollup play: More shares, more shares, more shares. Sure, it's possible the company will justify the acquisitions with earnings, but I wouldn't bet on it. Not only does this result in dilution, but the simple fact that there is an increased supply restricts any scarcity premium that a lower float would command. Based on my experience with this type of acquisition based growth, it usually ends ugly (for history buffs, take a look at CATP and NETA, but there are many others). I will not deny that there are trading opportunities - I have and will continue to play USWB short and long. But in the end, it is not a long term investment at current prices. The best way to get rich from USWB is to be an insider with option grants and discounted stock purchases. Convert your options and sell your discounted stock into the episodes of hype and excitement. Alternatively, if you don't want to work for a living, it's a good trading stock. The best way to become poor, on the other hand, is to buy into the hype as having some grounding in reality; Then make a long term investment; Then hold onto it while insiders continue the consistent history of selling, even while it is obvious to every online investor monkey and daytrader that "this baby's goin' to the moon", or whatever other silly slogans get people excited about the prospects. My bet: lots of trading opportunities, but steady long term stock price appreciation is not in this company's future. time will tell. Rick.

To: joshi who wrote (877)	5/13/1999 7:51:00 AM
From: Susan Saline	Read Replies (1) \| Respond to of 1188

good morning joshi, yes took position yesterday. Have been trading this the last couple weeks, several times it is similar to NEON ... and we are getting in, in the early stages of it's rise. Share price is considerably less than NEON, allowing the trading position of more shares This company I am much more familiar with, having traded CKSG cks group long before they were bot out by USWB. gave a nice buy signal a couple days ago.... tscn.com as for NETA ... it is a buy near the close (any close) as it gaps up most every morning ... once it's trend has changed. For a longer position stock ... that's on sale ... CDN ... it is very nice here also. Not too good for trading though, as intradays are not much of a range.