Yet again it's time to drop in on Neopia's foremost Financial Wizards. This
week, our hosts Neil Kauvuto and Maria Blumaroono will be joined by Miss Cyberta
Green, the CEO of Cybun Electromatics, who will be here to discuss the market's
apparent abandonment of Tech Stocks. And now, here are Neil and Maria…
KAUVUTO: Hello and thank you for joining us for this week here at The Neo-Market
Report. I am your host Neil Kauvuto, and as always I'm joined by Maria Blumaroono,
who's at the News Desk with the latest news from the floor. Maria…
BLUMAROONO: Thank you, Neil. Well, all in all it's been quite a slow week here
at The Exchange. The Neodaq has remained steady, and currently sits at 358 in
very moderate trading. However, there have been a few companies that have given
investors something to get excited about. Two such rising stars have been Mynci
Imports, who has seen it's stock price rise nearly two hundred and fifty NPs
a share in the span of one week, and Silly Squirrel Incorporated, which has
had a one hundred fifty five point rise of its own. Both jumps appear to be
fueled by reports of an apparent "baby boom" in Neopia, which would explain
a sudden surge in demand for Bananas and baby pet toys. It also appears that
many Neopians are looking to work off those holiday pounds, because another
big winner this week has been Techrobatics Fitness Videos, which has experienced
a higher than usual rise in post-Holiday exercise video sales.
KAUVUTO: However, there are a number of companies whose fortunes have continued
to reel. Chief among these is Neggwork Commerce, whose recent woes have been
one of the major stories of the economic New Year. Neggwork's one hundred and
fifty point drop last week was followed up by another fifty point drop this
week, marking the third week in a row that Neggwork has taken a loss. In what
has to be the most surprising loser of the week, it appears that The Neopian
Auction House's sudden rise in value has been left in shambles. After this past
weekend's auction failed to produce a single buyer, the company's stock value
has collapsed by nearly three hundred NPs. Unfortunately, another of this week's
big losers on the floor happens to be Cybun Electromatics, whose CEO Miss Cyberta
Green is here with us today. Cyberta, I wish we could have you here under better
CYBERTA: Neil, regardless of the situation I'm glad to join you here today.
BLUMAROONO: Now Miss Green, as many of our viewers know, the market for Tech
Stocks has really taken a beating during the past month. Your company, for instance,
has gone from selling for thirty-three hundred NPs a share to selling for right
around a thousand NPs. How would you explain this sudden loss of confidence
by consumers in the Tech Market?
CYBERTA: The thing people need to understand Maria, is that as our distributors
suffer we suffer as well. There's no point in us making these products if our
distributors can't sell them. I mean, take for example Neggwork Commerce. Last
year, when the sales for our scooters were going through the roof, Neggwork
was the one who consistently sold thirty five to forty percent of our scooters.
So now, as you know, when a company like Neggwork goes through what they're
going through, well then it comes back to us.
KAUVUTO: Now in your statement this past quarter, you mentioned the fact that
research and development costs have gone up. Would you care to elaborate on
this hike in costs, and discuss the effect it'll have on Cybun's future earnings?
CYBERTA: Well Neil, as you know a number of companies are rushing to develop
items for the Battledome. And so, not only do we have to work harder to retain
our researchers, but we also have to enter a very competitive market to recruit
replacements for those that we can't keep. So as you can see, it's a market
where the research people are calling the shots. However, on the bright side,
as an established and profitable company with a reputation for taking care of
its people, we offer the kind of stability that these "here today, gone tomorrow"
developers can't. Also, our ability to outbid our competitors allows us to get
the best people, even though it comes at a price. So even though the cost of
these bidding wars has significantly cut into our profits now, we feel that
it'll pay off with better products in the future.
KAUVUTO: Unfortunately, that's going to have to do it for us this week. Until
next time, for Maria Blumaroono and our guest Cyberta Green, this is Neil Kauvuto
saying so long and see you next week.