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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: yzfool who wrote (6015)	5/22/1999 3:25:00 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 28311

Thanks for posting that yzfool. That looks similar to some of the analyst reports I've read but what I'm trying to figure out is whether all internet analysts at this point have the same model. One I read recently was titled "cashflow.com" from CSFB. Their entire premise is that companies can be broken into one of 4 stages... startup, hyper-investment, hyper-growth, traditional growth (those were not the terms they used, I'm paraphrasing). The point was that all companies start as startups but those with a traditional base like Barnes and Noble have to reinvest their cash into plant property equipment and personnel. They growth curve flattens out eventually, whereas Amazon and net companies go from startup to hyper-investment, where they build the net infrastructure which is much more expensive than what B&N needs at the early level of sales. But then at some critical mass point Amazon no longer has to invest and cashflows accelerate rapidly because they can serve the entire world with the initial investment. I think the BW article is saying something similar to this and they quote Blodgett who is a good internet analyst. The problem I have is I have yet see anybody mention competition in this model because the expense of traditional retailing (B&N stores, etc) also keeps out competition, whereas anybody can set up a website early on. The fact that amazon is investing for the future is irrelevant to customers, they don't see it.