[lug] Red Hat $ 217/share long or short?

Jeffrey B. Siegal jbs at quiotix.com
Mon Dec 6 13:37:58 MST 1999


"Michael J. Hammel" wrote:
> No one except the nerd community (a very small percentage of the world)
> wants to download and install the OS.  Red Hat provides the packaging
> necessary to get this product to market.  That includes the ability to get
> it ported to various handheld and network connected devices.  They also
> provide support and a wharehouse of information for larger companies trying
> to untie themselves from Microsoft.

Good point.  If you look at the prices for their commercial support contracts
(start at $35,000/year), you'll see that what they offer (not just software)
is far from free.  If they're successful, in the sense of continuing to gain
market share, there is plenty they do sell that can potentially generate
profits.

> What's bidding RH up is pretty much the same thing that bid up Yahoo and
> Netscape.  Future potential.  Netscape couldn't deliver financially.  Yahoo
> seems to be.  At this point, it's anyone's guess if RH will do so.

Yup.




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