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Monday, January 29, 2007

the shares of agloco

Sceptic as I am, I'd like to dig any deaper in the 'own the internet' part. Unlike Agloco's ancestor Alladvantage (see other post) Agloco will combine paying with cash money and with shares (the cash money part will be written in a later post) instead of just cash money. What are these shares really worth? Objective as I am, I will tell you that the shares won't render money the first months. Agloco first needs to pay off all its depts made for the start-up and the site (nothing of this ofcourse will be paid by the members, as I said, you won't have to pay anything anytime), then the company will start to earn and so actually be worth something. Also , the more people are in the community, the more Agloco will be worth (but also the more you have to share money with), because of it's position. I would like to refer to Youtube, a site that was free of all costs, but with millions of members, it growed out to a leading company and therefor was sold to Google for 1.65 billion dollars! Oke, let us stay realistic, there are 3 possible scenario's that could be happening with the shares;
- Agloco fails to grow enough (unlikely, look at the graph) or grows to fast to handle and the company fails. In this case, the shares will remain nothing but virtual shares and won't pay off, the members will only get cash from the companies who paid to put their advertisements on the viewbar.
- The second scenario is that Agloco grows like crazy and the IPO is succesful. The shares will climb high in value and a positive cash-flow will be leading to its members.
- In the thirth case, Agloco grows like crazy and the IPO is succesful. The company might get the attention of big players like Yahoo, Google, AOL... and will be bought out. The shares will pay off good!

Expectations are that Agloco will list on the London Stock Exchange in the 4th quarter 2007. Before coming out in public, the stocks won't be worth more than virtual shares. For now, its impossible to say what the stocks will be worth when on the stock exchange, it will depend on the number of members and if the company doesn't implodes.

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