E-Mailbag Monday: iBeam, Foreign IPOs, Biometrics
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The IPO market has been the pits. Anything good for this week?
Reply: Actually, the IPO calendar is starting to show some strength and this week may have a couple winners. One to watch is iBEAM.
The company has created a broadband network for audio and video. iBEAM uses a point-to-multipoint satellite broadcasting system located in the facilities of network providers, hosting companies and Internet service providers. The network can handle 300,000 simultaneous Net users accessing data at 20 kilobits per second. This is expected to increase to 1 million simultaneous users by the end of 2000.
The Gartner Group projects that more than 50% of Web sites will include some streaming media by next year. Wanting to stake their claim in the broadband future, Intel and Microsoft own almost a quarter of iBEAM.
What do you think about investing in foreign-based IPOs?
Reply: It is hard enough investing in US IPOs, much less foreign ones. For the most part, individual investors have lots of disadvantages when investing in foreign issues. First of all, it is difficult to get information. In many cases, a foreign IPO is not published on the EDGAR online databases. Then there are other risks. Politics can be significant, especially in those countries that have a history of instability. Next, there can be problems with currency fluctuations. In fact, it is often the case that other countries have different accounting systems.
Biometrics: Still Sci-Fi?
What is biometrics?
Reply: Transacting on the Web presents many problems. Perhaps the biggest problem is verifying that the person you are doing business with is real. With biometrics, you can authenticate a user. This is done by analyzing such things as voice, fingerprints and even retinas. The technologies are still emerging, but will likely become more pervasive. Of course, we see many companies capitalize on this technology. The most troubling concern is privacy.