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> It's worth pointing out that, while sometimes the company outlives its cash, the stockholders almost never do.

Whelp, Stockmaster has the chart for MSFT. Could you run up the anticipated date for us?

It's not quite so nearly monotonic as the dot coms you list, but it's still not the kind of thing that cheers stockholders.

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VA Linux, Slashdot's parent, isn't doing well either. The stock has dropped from 320 to 9. And they're still not making money.

I'm not suprised. SEGA is losing money and their stock is crashing. But they have some well-liked products. That makes them a good candidate for an acquisition.

SEGA stock is down 75% from its peak early this year. They're losing money. And they don't have an entry in the next generation race: Sony has the PS2, Nintendo has the GameCube, and Microsoft has the X-Box. Sega? Well, Sega has a new GameBoy-like unit. Maybe they're moving to the handheld market.

So SEGA is sinking. One article on SEGA wrote "This company is dead", but it's too soon to tell.

This is not the end of the world, but it's the end of those "lose money on every sale and make it up on volume" Internet companies. As the Red Herring pointed out, there are around 200 Internet companies that have to outperform Microsoft to justify their stock values. No way could that happen.

As for LNUX, its decline is only vaguely related to the overall market. Look at the chart.. It's been in a screaming dive since the IPO, down over 90% now. Regardless of market conditions or VA Linux press releases, the dive remains steady. It's a very pretty chart. I pointed this out a month ago, when LNUX dropped through 100. Now it's at 29. Enough said.

This is not the end of the world, but it's the end of those "lose money on every sale and make it up on volume" Internet companies. As the Red Herring pointed out, there are around 200 Internet companies that have to outperform Microsoft to justify their stock values. No way could that happen.

As for LNUX, its decline is only vaguely related to the overall market. Look at the chart.. It's been in a screaming dive since the IPO, down over 90% now. Regardless of market conditions or VA Linux press releases, the dive remains steady. It's a very pretty chart. I pointed this out a month ago, when LNUX dropped through 100. Now it's at 29. Enough said.

As usual, LNUX is down; closed at 80 today. Check the moving average on LNUX to see the trend. RHAT is down, too. So the CALD offering didn't do anything to pump up the other Linux stocks; it was a lousy day for both of them.

And the Caldera logo does look like Mickey Mouse(tm) overshadowing the world.

As usual, LNUX is down; closed at 80 today. Check the moving average on LNUX to see the trend. RHAT is down, too. So the CALD offering didn't do anything to pump up the other Linux stocks; it was a lousy day for both of them.

And the Caldera logo does look like Mickey Mouse(tm) overshadowing the world.

As usual, LNUX is down; closed at 80 today. Check the moving average on LNUX to see the trend. RHAT is down, too. So the CALD offering didn't do anything to pump up the other Linux stocks; it was a lousy day for both of them.

And the Caldera logo does look like Mickey Mouse(tm) overshadowing the world.

As usual, LNUX is down; closed at 80 today. Check the moving average on LNUX to see the trend. RHAT is down, too. So the CALD offering didn't do anything to pump up the other Linux stocks; it was a lousy day for both of them.

And the Caldera logo does look like Mickey Mouse(tm) overshadowing the world.

VA Linux has about $130 million in cash less liabilities, and they're losing money at an annual rate of about $46 million. (This is computed as 4x the most recent quarterly figure.) So they're in good shape in the cash department, and have two or three years to become profitable. Yes, the stock is tanking, but they have the money in the bank. This gives them some staying power.

Red Hat is in good shape, too. They have around $88 million in cash less liabilities, and they're losing money at around $14 million a year. So they have a few years if they don't overexpand. Red Hat is trying to do a second-round public offering to raise more money, presumably so they can overexpand. When they filed with the SEC for that offering in January, their stock was at 131; now it's around 59. That's an bad situation in which to try another offering, but they don't need immediate cash to operate.

So neither of those companies is going to go away quickly. They're in businesses that don't really take heavy capital investment, after all. On the other hand, as stocks, both are incredibly overpriced, as the market is recognizing.

VA Linux has about $130 million in cash less liabilities, and they're losing money at an annual rate of about $46 million. (This is computed as 4x the most recent quarterly figure.) So they're in good shape in the cash department, and have two or three years to become profitable. Yes, the stock is tanking, but they have the money in the bank. This gives them some staying power.

Red Hat is in good shape, too. They have around $88 million in cash less liabilities, and they're losing money at around $14 million a year. So they have a few years if they don't overexpand. Red Hat is trying to do a second-round public offering to raise more money, presumably so they can overexpand. When they filed with the SEC for that offering in January, their stock was at 131; now it's around 59. That's an bad situation in which to try another offering, but they don't need immediate cash to operate.

So neither of those companies is going to go away quickly. They're in businesses that don't really take heavy capital investment, after all. On the other hand, as stocks, both are incredibly overpriced, as the market is recognizing.

But it's good to have a real company behind Linux. The "Linux companies" may not have much time left. VA Linux continues its screaming dive with no sign of a pullout (it's at 87 right now, down from over 100 last week), and Red Hat doesn't look all that great either. Red Hat's latest partner: StupidPC. (Really)

But it's good to have a real company behind Linux. The "Linux companies" may not have much time left. VA Linux continues its screaming dive with no sign of a pullout (it's at 87 right now, down from over 100 last week), and Red Hat doesn't look all that great either. Red Hat's latest partner: StupidPC. (Really)

But it's good to have a real company behind Linux. The "Linux companies" may not have much time left. VA Linux continues its screaming dive with no sign of a pullout (it's at 87 right now, down from over 100 last week), and Red Hat doesn't look all that great either. Red Hat's latest partner: StupidPC. (Really)

Remember, these are tiny companies with no profits and little unique technology. They don't have anything that makes them valuable. Even worse, considering they have a business model that consists of putting free stuff in a box and selling it, it's embarassing that the Linux companies lose money. They're going to make it up on volume? Yeah, right.

Remember, these are tiny companies with no profits and little unique technology. They don't have anything that makes them valuable. Even worse, considering they have a business model that consists of putting free stuff in a box and selling it, it's embarassing that the Linux companies lose money. They're going to make it up on volume? Yeah, right.

Besides, the Linux hype is winding down. Look at the Red Hat and VA Linux stock prices. VA Linux hit another new low today; they're down to 96. Red Hat isn't doing well, either.

Besides, the Linux hype is winding down. Look at the Red Hat and VA Linux stock prices. VA Linux hit another new low today; they're down to 96. Red Hat isn't doing well, either.

In other Andover-related news, the stock of the parent company, VA Linux, dropped below 100 for the first time today. This continues the screaming dive from the high of 320 only last December. How low can it go?

Both are in continued steep declines. This is the usual pattern after a speculative bubble. The real question is where they'll bottom out. Both are unprofitable, so none of the usual financial metrics apply. The theoretical bottom for a money-losing company is zero. Live by the hype, die by the hype.

The insiders can cash out after six months now. The restricted period used to be two years, so the company actually had to become a success for the insiders to profit. No longer. Watch the insider trading reports. So far, nobody can sell, but wait.

Note: I have no holdings or short interests in either company.

Both are in continued steep declines. This is the usual pattern after a speculative bubble. The real question is where they'll bottom out. Both are unprofitable, so none of the usual financial metrics apply. The theoretical bottom for a money-losing company is zero. Live by the hype, die by the hype.

The insiders can cash out after six months now. The restricted period used to be two years, so the company actually had to become a success for the insiders to profit. No longer. Watch the insider trading reports. So far, nobody can sell, but wait.

Note: I have no holdings or short interests in either company.

Think about how much money 21 billion is. You could replicate the entire US Internet backbone for less. You could replicate AOL's entire system for less. And Network Solutions provides what, after all, is a minor piece of the system. It's like a steering wheel manufacturer selling for more than a car company.

We're seeing a frantic effort by Internet bubble companies to acquire before their idiotic market caps go away. And they are going away. VA Linux, for example, continues its screaming dive down from 320. It's at 110 right now, about 1/3 of the peak last fall. They got down to 101 a few days ago. It used to be that you didn't see drops like that for anything short of a bankruptcy.

Personally, I consider Red Hat legitimate but overvalued, LinuxOne a scam, and VA Linux somewhere in between.

For those of you in Silicon Valley, the authors of "The Internet Bubble" are speaking at Kepler's Books in Menlo Park this Wednesday evening. I recommend this to anybody who thinks investing in this outfit is a good idea.

Incidentally, VA Linux does not make hardware. They're a reseller for a small PC assembler in Fremont, CA. Read their SEC filing.

Historically, there are very few examples of companies that had huge price/revenue ratios and eventually grew up to generate enough profits to justify them. (Exercise for investors: name three.) But there are many examples of speculative bubbles.

The Linux stocks aren't the usual growth company situation. Usually, you have big revenue, big expenses, and small profits. The classic good example is Amazon.com. (The classic bad example is Buy.com, which has a business model of selling at a loss and making it up on volume.) But both Red Hat and VA Linux have small revenue, no profits, no valuable assets, and a huge market cap. That's not a growth company. It's something else, and it's not good.

The current market is running on what's called "greater fool theory", the hope that, even though you own something that's overpriced, there's some sucker out there who will buy it for even more money. As with all Ponzi schemes, eventually you run out of suckers.

There is going to be a bloodbath in these stocks. Probably this year.

Incidentally, VA Linux does not make hardware. They're a reseller for a small PC assembler in Fremont, CA. Read their SEC filing.

Historically, there are very few examples of companies that had huge price/revenue ratios and eventually grew up to generate enough profits to justify them. (Exercise for investors: name three.) But there are many examples of speculative bubbles.

The Linux stocks aren't the usual growth company situation. Usually, you have big revenue, big expenses, and small profits. The classic good example is Amazon.com. (The classic bad example is Buy.com, which has a business model of selling at a loss and making it up on volume.) But both Red Hat and VA Linux have small revenue, no profits, no valuable assets, and a huge market cap. That's not a growth company. It's something else, and it's not good.

The current market is running on what's called "greater fool theory", the hope that, even though you own something that's overpriced, there's some sucker out there who will buy it for even more money. As with all Ponzi schemes, eventually you run out of suckers.

There is going to be a bloodbath in these stocks. Probably this year.

Yeah, VA Linux are good guys and all that, but you have to look ahead to the next change of control, either due to acquisition or other management events. VA Linux is headed for heavy stockholder pressure; look at LNUX stock, down more than 50% from the first day. Scary.

I hope one of these sex operations goes public so I can invest in it, since it's gotta be the fastest growing industry in silicon valley.
It's been done. BoysToys, ticker symbol GRLZ. Didn't work.

I wonder whether Etoyss bullying tactics and
the following bad press had contributed to the dive of Etoys stock.
Check out here. A friend of mine bought at 57 because he was sure
that ETYS had potential.

Then came the dive. Oooops. That hurts.

This ETOY-ETOYS battle shows that even
small guys have a chance against big guys if they
march united.

Another reason to think about supporting the
Electronic Frontier Foundation.

I today subscribed for a membership. Costs me 35
bucks per year. I think that these people do
a good job supporting my interests. Nobody should
feel pressed to subcribe, but consider that
you still can do some good before y2k hits us and
our boxes and well have to shine up before our Lord and blah blah....

Give them a hand, they IMHO deserve it.