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

To: PhantomTrader who wrote (6044)	5/23/1999 11:31:00 PM
From: RTev	Respond to of 28311

Since you are using the stock to buy companies, will it affect the value (negatively) of the current shareholders in any way? If they make a bad deal, then yes, but if they pay a fair price for the new company, then the value of GNET will increase proportionately to the extra stock issued. The problem, of course, is that it's so durn difficult to figure out what an internet company is really worth, so in the end it comes to be a matter more of expectation than of real value. One problem that seems to arise is that the new stock issued for an acquired company puts selling pressure on GNET stock. Since investors in the acquiree will often want to cash out as soon as possible, they may put a large number of GNET shares on the market for several weeks. (This seems to have happened a few weeks ago when the Web21 folks cashed out.) After that's over, however, the float percentage of GNET increases, giving it greater liquidity. By the way, I mentioned this before: I think this is one of the reasons Bill Fleckenstein is a good choice for the board. As a board member, he will be asked to vote on deals like this. It's good to have someone there who will argue against paying too much for a potential acquiree.