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Network Solutions is now in the wringer

  • From: Michael Dillon
  • Date: Thu Mar 25 21:43:54 1999


Best to be aware of what is now coming down on Network Solutions.
The following is an excerpt from this article:
http://biz.yahoo.com/prnews/990325/ny_asensio_1.html

   The following is being issued by Asensio & Company, a member of the
   National Association of Securities Dealers, CRD number 31742:

   Investors may be buying Network Solutions, Inc.'s (Nasdaq: NSOL - news) 
   stock believing the company possesses some market advantage, recurring
   income or proprietary technology that has allowed it to create, and
   will allow it to grow, its Internet domain name registry and registrar
   business. We found no reasonable basis for these beliefs.  NSOL's
   domain name business has been and remains totally reliant on a
   7-year-old U.S. federal government contract, which is expiring and will
   not be renewed. We believe that NSOL's management has purposely
   disseminated misleading information, and failed to disclose material
   negative information, that has led investors to believe that the
   expiration of this contract will be postponed or that it cannot be
   entirely and easily terminated. Investors have also been led to believe
   that even if the contract is terminated, NSOL's business value will
   continue to grow. These expectations are baseless and false. 

If their house of cards collapses too quickly it could have some serious
operational impacts. And we all do realize that it is a house of cards,
don't we?

--
Michael Dillon                 -               E-mail: michael@memra.com
Check the website for my Internet World articles -  http://www.memra.com        







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