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

To: Peter V who wrote (740)	6/3/1999 7:43:00 PM
From: Mary Baker	Respond to of 1150

My other plus is...I bought my shares eons ago at $5.00...so I have the inclination, patience, and desire to wait... It is my AOL and DCLK that are giving me grief...and their meltdown has been occuring for weeks now...where RRRR has held up nicely...thank you! Mary

To: Peter V who wrote (740)	6/3/1999 9:17:00 PM
From: Rajiv	Read Replies (2) \| Respond to of 1150

Peter, It reflects my change in opinion about RRRR from bearish to neutral. Some +ve points - - RRRR is using its high stock price to purchase companies "cheap". It is still paying 2 times TTM revenues in stock. With a higher stock price their acquisitions are less dilutive (on a relative basis). - Apollo will have around 40% representation on the board of directors. There is a possibility that Apollo will try to make RRRR a winner rather than cash out immediately. - RRRR is putting out a steady stream of press releases. Though most of them are not materially significant, some investors in internet stocks love seeing press releases. - Their % revenue growth will look good on paper. Some people might conveniently ignore that it is mostly through acquisitions. They might benefit from economies of scale. USWB executed fairly well with a similar strategy. Some -ve points - - Large float and # of outstanding shares. - The current stock price has factored in (to a large extent) very good execution of their business plan. If they fail to execute, the stock will suffer. - If RRRR turns out to be a winner, Apollo can dilute the already heavily diluted stock by exercising their warrants. This can limit the upside in this risky investment. - The internet sector is getting killed. If this continues, RRRR can see another 30-40% drop from current levels. Regards. Rajiv