And now it's time to join our hosts for yet another installment of the Neo-Market
Report. In addition to bringing you the latest from the floor, Neil Kauvuto
and Maria Blumeroono will be joined by Steve Kause, the CEO of Kacheek Telecomm,
who will discuss the company's volatile change in stock value during this week's
trading. And now, here are Neil and Maria…
KAUVUTO: Hi, and thank you for joining us today on the Neo-Market Report. I
am your host Neil Kauvuto and to my left at the News Desk is my co-host Maria
Blumeroono. Maria, this has been quite a turbulent week in the market, hasn't
BLUMAROONO: Right you are, Neil. This has been one for the record books. Continuing
last week's surging Bull Market, the first three days of this week saw the Neodaq
soar two thousand more points, easily surpassing the six and seven thousand
marks. But then came what is being called "Black Thursday" on the floor- a two
thousand point freefall which left the market reeling at just above five thousand
points. After weeks of speculation that the price-to-earnings ratios of many
of the Neodaq's top stocks had become distorted, Neodaq blue-chippers like Kacheek
Telecomm and Neggwork Commerce saw their stock prices drop precipitously. Now,
as expected, prices on many of the blue chippers have begun a protracted return
to form. In fact, stock prices for Kacheek Telecomm have jumped nearly 10,000
NP's since trading opened Friday morning. Other big gainers on Friday included
Yippee!, whose reputation as a reliable stock has made them a valued commodity
in the face of such volatility, and Chiatech Password Security, whose value
has continued to climb since the company's shakeout in the wake of last month's
KAUVUTO: However some companies are continuing to feel the fallout from "Black
Thursday." Among those still posting losses are Neggwork Commerce, a company
whose meteoric rise just a few weeks ago was once the toast of the town, and
Techrobatics Fitness Videos, whose value has dipped upon word that "Pet-Bo"
host Billy Bankaroo was injured in a skiing accident this past Tuesday.
BLUMAROONO: Now we are joined by one of the most powerful moguls in all of
Neopia. Here to discuss the market's recent volatility and how it has effected
the value of his own company is Kacheek Telecomm CEO Steve Kause. Steve, thank
you for taking the time to visit us…
STEVE: I'm glad to be here, Maria.
BLUMAROONO: Steve, can you give us your view on what has happened on the floor
during this past week. I mean, from your perspective, what do you make of it?
STEVE: Well Maria, from the way I see it, these kinds of corrections are bound
to happen. You know, I remember a couple of months ago when you talked to the
guys from The Kacheek Fund, they were saying that we were overpriced at 15,000
NP a share. And look at us now-I mean last week we broke 100,000! So, yeah,
it was only a matter of time before something of this nature occurred. But then
again, if you look at what's happened today, we've gotten back on our feet,
jumped up past 70,000 and now we're well on our way to breaking 80,000. But
insofar as the market as a whole, yeah, the price-to-earnings ratios were starting
to get a little fuzzy. But I'm sure that now that we've gotten past this little
bump in the road it'll be business as usual.
KAUVUTO: Since you mentioned it, another thing that Hans and Lenny of the Kacheek
Fund mentioned was a likely challenge to your dominance of the market on the
part of companies like Cybun Electromatics and Neopian TV Channel One. To this
point that challenge has yet to materialize, and my question to you is, do you
foresee such a challenge emerging?
STEVE: Well first of all I have to tip my hat to those guys because, especially
in the case of Cybun, those guys have done some really cool things which have
allowed them to build themselves a great little company. But, seriously, are
they a threat? Not really. But see, that's the trick…we've got to keep these
little companies from becoming a threat, and the way to do that is to stay on
our game and never underestimate our competition.
BLUMAROO: And now we're seeing the emergence of another tech stock player in
the form of Yippee! and their recent success. Do you really see them getting
involved in the multimedia fray?
STEVE: At this point it's really a case of apples and oranges, but I think
that as their value grows they'll be tempted to branch out. And when that day
comes, we'll just have to prepared for it. So yes, we do keep an eye on how
they're doing, but I think that the days when we are actually in competition
with them are probably still a ways off.
KAUVUTO: Well that's it for us this week, but be sure to join us next time
for the Neo-Market Report. Thank you, and good night.