Archive of UserLand's first discussion group, started October 5, 1998.
Re: Pokémon.Com?
Author: Erik Neu Posted: 11/17/1999; 10:04:16 AM Topic: CallTheShots.com Msg #: 13149 (In response to 13146) Prev/Next: 13148 / 13150
>>But I think most people are thinking acquisition, not IPO. Sooner or later, you've got to make money to survive as a business. An investor's perspective is different, however (maximizing share value).>>If markets are efficient and rational (foundational assumption in financial theory), the attractiveness of an investment should be directly correlated to its ability to make money (factoring in the time value of money, or NPV). In other words, the (long-term prospects for) profitability of a business and its ability to attract equity investments should be intimately related.
Generally and over time, I think this has been a solid assumption, though it is tempting to think this is NOT one of those times, at least in the "dot.com" space, and that something like the infamous "greater fool" theory predominates.
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