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Re: venomen2002 post# 14551

Wednesday, 10/31/2007 10:52:20 PM

Wednesday, October 31, 2007 10:52:20 PM

Post# of 41740
Basically, in the business world, you don't go into a venture thinking you're going to lose money. You sit down, you figure out how much you're going to have to invest to get set up; i.e. in this case what is it going to cost to set up to operations in India; what will be the costs incurred for ongoing operations, if any,; what would be the REQUIRED RETURN in order to cover these costs; in what time frame is that return expected; and ultimately, what is going to be their EXPECTED profit margin over their expenses. This is what a business does. If you don't have a solid business plan whether you're selling widgets or webkinz, you don't get funding but DO GET TOXIC FUNDING. Basically, the pr's that come out do not suggest they have a good solid business plan. The press release today says they've entered into a blind contract. They're going to have to deliver something to India. They do not have any information to suggest that they can support this investment in India from a revenue stream. Microsoft does not start into a new computer venture without some expectation of what they are going to get for return. These are the centers of their quarterly and annual statements. "We expect Vista to return xxx ". Something of this sort, to give a ballpark range, or target to be met, which seems to be a big thing with every quarter with big businesses in meeting their sales expectations, should be something we expect from a company that once ran with the big boys at $27/share. Veno, I would think with your investments in this company, you'd want to know they're going to get something back from India and can actually operate in the black before they spend money on the India project.
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