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Dateline: 17 April 2000 Early Edition Read The Previous Edition A permanent link to this page can be found here
Editorial
Damned good news I say!
Maybe now we can get back to establishing the value of tech companies on the
basis of their performance and true potential rather than by the slickness
of the latest range of fictional publications -- otherwise known as the
Internet-venture business plan.
A couple of weeks ago the BBC screened a documentary in which they attended
a get-together of venture capitalists and Internet entrepreneurs. Hundreds
of millions of dollars worth of business was transacted -- which is no surprise,
what was a surprise to me however was the way in which some of those present
appeared to be envious that one of the wannabes had already received over
10,000 hits on their website during the past month.
Excuse me? There are venture capitalists stupid enough to invest millions
or tens of millions in a company because it's popular enough to get just over
10,000 hits in a month?
Hell, even this site (which for some strange reason has doubled in popularity
over the past 3 months) now gets around 80,000-90,000 page views per month
(which produces around 500,000 hits or so).
The ability for no-name, no-clue wannabes to soak up masses of venture capital
has been the bane of the many others who really do have good ideas -- but
who simply lack the contacts or the skills to draw up an enticing business plan.
Let's hope that the shock of last week will force venture capitalists to
perhaps be a little more selective in just who they decide to back, and let's
hope they are prepared to look beyond the fact that the company has "dot com"
in its name.
Unfortunately I fear that the tech slump will now produce a "once burnt, twice
shy" situation where investors will become wary of even the soundest and
most well thought-out propositions.
Of course right now I can hear all the lefty socialists out there saying
"see -- it's a good thing that New Zealand didn't waste money getting into
this so-called 'new economy.'" To them I would say that even after last
weeks disastrous performance, the Nasdaq is still up around 50 percent
on the same time last year. How much have our meat, timber and dairy
receipts increased by over the same period?
I think we'll also find that despite the fact the NZ market hasn't enjoyed
any of the up-side associated with the US tech-boom, we'll still feel the
sting of the slump -- which makes us even worse off than if we did have
a solid new economy operating here.
It should also be remembered that this slump in new economy stocks mimicks
very closely the plight of shares in radio companies and broadcasters back
in the 1920s. At that time, stocks of companies such as RCA were hugely
over-priced and suffered dramatic losses during the stockmarket crash.
However, even today, there are some VERY profitable
broadcasting and consumer electronics companies in existence. Likewise there
will be some very profitable and high-value Net companies emerging from the
present crowd of pretenders.
Are Microsoft Bullying?
The letter, which was delivered by courier, reportedly asks the recipient
to prove that they are not engaged in such activities. The suggestion
is that if he can't do this then they will pursue the matter further --
to ultimately bring civil proceedings under the copyright act.
This leaves the superannuiant who received the letter in an awkward situation...
How do you prove "innocence" of such allegations, and should he be forced
to waste huge chunks of his modest income on retaining legal advice so as
to avoid being squashed by the mighty Microsoft shark-squad?
One must also ask why the letter was couriered from Microsoft Australia and
not Microsoft New Zealand?
Could it be that by launching the assault from Australia, Microsoft won't
be bound by NZ law that might otherwise force them to disclose the identity
of a possible informant?
What ever happened to the 60's man? Where has all the peace and love gone?
:-)
0867 Overloads
Overload at 8:15 am on a Saturday morning?? -- or are Telecom just twisting
the knife because they've been forced to continue providing service to i4free?
Free republication rights available
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Aardvark Daily is a publication of, and is copyright to, Bruce Simpson, all rights reserved
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