Forum Archive Index - January 2000

["hugh webber" <hugh.webber@clear.net.nz>]

It passed one of the fundamental tests of a value stock - while the market
was falling it rose (staying still or falling slightly would also have been
within the value stock characteristic). It seems to have cornered some good
niches in specialty farm chemicals and pharmaceuticals (query is it a
Buffett consumer monopoly) and to be typified by good long sighted
management (another Buffett value stock requirement).

I notice someone asked a while ago what commoditisation of ISP's was/is.
This I fear will be a growing problem in much of the tech scene which has
not been taken into account i.e. (a) some new investors don't know the
lingo/haven't read the relevant literature and (b) the commoditisation
aspect of some of the tech area. Briefly it means that there are low or no
barriers (such as very high capital cost or restricted availability of the
technology) to entry into being an Internet Service Provider and that the
revenue is directly affected by price. A comparison is therefore with say
sugar or maybe toll calls which has also commodified.



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