eMailbag: Something Cabled This Way Comes?
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First reader up this week, from MB, whose firm provides a turnkey service for small- to mid-sized cable operators wishing to offer Internet access over their cable plant:
"Do you have an opinion about the ability of cable operators to compete with their local ISPs?"
Reply: ISPs are generally more responsive to customer needs and the know-how needed to get people on the Internet. Cable operators have run virtual monopolies for 20 years and haven't yet shown the mindset to compete for Internet business. To them, the Internet is an industry separate from cable TV anyway.
"Just curious about your opinion on DoubleClick (DCLK). According to some of the news reports the company is hiring some "heavy hitters" in the Internet advertising world. Its stock was an IPO just a few weeks ago; it may be a bit of a roller coaster at first, but if DoubleClick handles things right?"
Reply: I like DoubleClick (NASDAQ:DCKL) for several reasons, the first being its Net-enabled nature. DoubleClick couldn't exist anywhere but the Internet and it pioneered a new way of advertising. Another reason why Madison Avenue may be losing clout in the new media frontier. See ISR December 17, 1997 for more analysis.
"Liked the information [about Broadcom in ISR March 24, 1998], but when is the issue due out?"
Reply: Broadcom filed the initial documents to sell stock to the public. These documents don't provide an offering date, that comes later as the issue progresses to a red herring and then prospectus. The whole process of paper pushing usually takes about 30 to 45 days. Keep an eye out. Contact the underwriters listed in the report.
"I noticed the most recent Internet World had a column called 'WEBDEX: Assessing the value of the top sites' users.' I was wondering where the number for the users column comes from--is that from a service like I/Pro, self-reported, guessed, or what?
Reply: User numbers are from Relevant Knowledge. WEBDEX is a service of Mecklermedia, producer of this report, which combines those figures with market capitalization and our estimated private market value for Web assets, yielding the WEBDEX. See ISR March 26, 1998 for our latest weekly roundup.