SI
SI
discoversearch

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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Sarmad Y. Hermiz who wrote (58907)5/27/1999 7:25:00 PM
From: KeepItSimple  Read Replies (2) | Respond to of 164684
 
>But how do you explain this: they all lose money and they all stay in business
> and expand ?

Simple. The investing public is throwing billions of dollars at these companies, allowing them to stay in business and lose more and more money.

Of course the flip-side to this is that they'll all go bankrupt very shortly after the public wises up and stops giving them money. And that, unfortunately, is the dirty little secret behind 99% of pure-play net companies.



To: Sarmad Y. Hermiz who wrote (58907)5/27/1999 9:11:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
Glenn always said net retailers will either raise prices or go out of business. But how do
you explain this: they all lose money and they all stay in business and expand ?


Sarmad,

They are all still getting money from the equity markets either through secondarys or junk bond offerings. The equity markets will stop feeding them eventually.

Glenn



To: Sarmad Y. Hermiz who wrote (58907)5/28/1999 8:10:00 AM
From: Cap_Loss_Cfwd  Respond to of 164684
 
>>how do you explain this: they all lose money and they all stay in business and expand <<

It's elementary, Sarmad. As long as equity investors are willing to step up to the plate and provide funding for these companies they can lose money at will. Of course, when that is no longer possible and the weak links are weeded out, the bloodshed will be awful. WHen you liquidate an Internet company the net proceeds wouldnt buy lunch.