Internet Business Share Discussion Threads

[nghomi] 28/2/2007 13:33

Lord Buffett,
I think we are probably talking about less than 10% of total holiday package price will go to Henoo. I am not 100% sure, but I think I read somewhere that affilate comission is around 2%. Do you know what is the arrangement between Henoo and tour operators?

[lord buffett] 28/2/2007 12:48

nghomi

That's exactly right.

You may well have gone to henoo.com direct, as you know of it through your knowledge of the company, in which case IBG will get the affiliate commission as well as the commission override, i.e. over four times as much as normal... as I understand it.

(It's worth pointing out that not many people would go directly to henoo.com though, as they simply wouldn't know about it.)

[aleman] 28/2/2007 12:43

China is not the cause of all this.Yesterday they were blaming South African windfall taxes on miners and Alan Greenspan's comments. UK shares fell heavily this morning despite China rising strongly overnight. The underlying reason is liquidity has finally started to dry up in response to rising rates. Markets often seem to ignore rate rises until this tipping point is reached where contraction can occur quite suddenly as sentiment alters. The main drivers are usually where the excess speculation occurred. The two obvious ones are the Yen carry trade where new loans are no longer being taken out and some are even being paid back, and the US and certain other bubble property markets where lenders are tightening up requirements on the back of rising bad debts. As with the credit card market, bad debts are written off and new loans get more expensive so fewer are taken out. The total volume of outstanding loans stops growing and even starts to fall. The overall effect is known as a credit crunch where there is a chain of defaulting - credit card, personal loans, mortgages, small businesses, big businesses. It is hard to manage with interest rates once it starts, although it can be. The debt collapses and falling money supply undermines all asset markets, especially those heavily debt driven. China speculators were borrowing heavily so they got hit harder. The BBC have been reporting the symptom as the reason rather than the actual cause.

[niggle] 28/2/2007 12:42

too true Wullie, too true! :O)

[nghomi] 28/2/2007 12:40

Finally I bought my holiday using Henoo.com. The way it works (at least this is my understanding!) is that henoo directs the user to another tour operator (in my case AirTours). Then, you will most probably buy something from AirTours (which could be completely different from your original choice!). Then I think Henoo gets something from AirTours because the cookies on my pc will last for 30 days and the "clever" software will know that I was recommended by Henoo. Does it sound any where close to reality?

[williemanjaro] 28/2/2007 12:28

Not expected here though---niggle we are not one of em` :-)

[niggle] 28/2/2007 12:24

Talk of quite a rebound happening on the dow as china bounces 4%. see www.cnnfn.com

[niggle] 28/2/2007 12:09

Most of the sell off has been on stocks that were showing significant gains over the past 3-6 months, IBG is not one of them imo

[waynerwayner] 28/2/2007 09:29

Considering the sell off its holding up nicely...

[yump] 28/2/2007 09:27

I wonder how many more things will pop up to stop IBG share price staying above 30p ?! Can't be many things left...

What about 'Government proposes to nationalise internet to control identity theft crimewave'.

That should b....r it for a while ;-)

[taurusthebear] 28/2/2007 08:52

I'm offered 28.775p to buy. Tempted, but that chart seems to want to go back to 27p! :0)

[gswredland] 28/2/2007 08:45

Want to get in here and i am hoping this presents a good buying opportunity. Looking with interest.

[niggle] 28/2/2007 08:16

Try shoes :O)

[taurusthebear] 28/2/2007 02:21

Well, I'm grabbing some more at 27p if the market wants to offer me them later! :0)

[aleman] 27/2/2007 23:32

I suspect losses are being driven by hedge funds liquidating positions to pay off their Yen loans. This explains the Yen's abnormal strength today. As hedge funds have very high gearing of up to 1000%, their equity is quickly wiped out as shares fall and the Yen rises. They would sell indiscriminately whatever is in their portfolio - shares vulnerable to a downturn and those less so, as well as bonds or property - they just have to sell quickly. This creates buying opportunities for the brave, eventually. I would not like to be a bank that is lending them 10 times their equity. There is a possibility I would not get all my money back, unless it was insured, in which case I would not like to be the insurance company. Tough luck if the bank owns the insurance company. Also, hedge funds have an unhealthy appetite for derivatives to hedge some positions or just take positions quickly. The risk is transferred to somebody else, but that is often lost in further hedges and swaps. It can get very messy if it unwinds quickly. As banks start to hurt, the unwinding of excessive debt in an economy causes a credit crunch. The banks start refusing new loans so old ones get defaulted on when they can't be refinanced. Big companies do better in a credit crunch since the banks can't afford not to refinance the big companies. Letting the small ones go bust still tends to cause a recession. The further rise in the Yen overnight suggest hedge fund Yen buying has made remaining open positions worsen further so they will be keen to sell assets again in the morning to close out. It is never a good idea for lots of large investors to chase the same method of profits. It feeds on itself until it goes wrong when everyone gets crushed in the race for the exit. I have not yet seen any press comment to support my theory but there is a remarkable similarity between the minute by minute Dow Jones Index and the $/Yen rate movements today. One way out of this possible mess would be central bank intervention in the currency markets, effectively baling out the hedge funds. It would be a quick fix, although inject inflation into the system. I'm sure it will be interesting in the morning even if I am wrong.

[hirschnathan] 27/2/2007 23:27

Nig

I am happy for you. But my clicks are going up and still zero sales (uk), us ia better.
I mainly promote phones holidays & gadgets, I am not into the clothing sector.

[niggle] 27/2/2007 23:14

Nath we are getting our highest visitor numbers and sales ever.

[hirschnathan] 27/2/2007 22:55

NEW YORK (AP) - When the Dow Jones industrial average plunged to its low of
the session Tuesday, it happened with incredible swiftness -- a matter of
seconds -- because of a computer glitch that kept some trades from being
immediately reflected in the index of 30 blue chip stocks.
Dow Jones & Co., the media company which manages the flagship index, said
around 2 p.m -- just two hours before the New York Stock Exchange was to close
-- it was discovered computers were not properly calculating trades. The company
blamed the problem on the record volume at the NYSE, and switched to a backup
computer.
The result was a massive swoon in the index that happened in the seconds it
took Dow Jones to switch to its secondary computers.
"The market's extraordinary trading volume caused a delay in the Dow Jones
data systems," said Dow Jones spokeswoman Sybille Reitz. "We decided to switch
over to the backup system, and the result was a rapid catch-up in the published
value of the Dow Jones industrial average."
Spokesmen for the NYSE Group Inc. and Nasdaq Stock Market Inc. could not
immediately confirm if all closing share prices were valid. A spokesman for the
Big Board said it experienced "intermittent delays and are currently assessing
the situation." The Nasdaq said it was "confirming" the closing numbers.
The Dow plunged about 200 points in a matter of minutes, and dropped as much
as 546 points -- its worst decline in more than five years, and one that sent
the blue chips into negative territory for the year.
The Dow closed down 416.02, or 3.29 percent, at 12,216.24; the Standard &
Poor's 500 index fell 50.33, or 3.47 percent, to 1,399.04; and the
tech-dominated Nasdaq composite index was off 96.66, or 3.86 percent, at
2,407.86.

[68steve] 27/2/2007 22:42

The illiquid stocks will take a beating but plenty of buying opps will occur,should be interesting days play...

[hirschnathan] 27/2/2007 22:39

Today has been by far the worst day for me on af since october, a lot of click thrus but no sales (well not exactly, 489 clicks and £5.89 in revenue, whopeeeeeeeeee).

Well cant blame anyone, I dont feel like spending either

[yump] 27/2/2007 22:33

"The Russell 2000 index of smaller companies took a painful 3.77 percent hit
Tuesday, compared to a 3.47 percent drop in the Standard & Poor's 500."

Yes the comparison really shows that the small companies are melting down.
Where do they get these journos ?!

Let me think: how many of my smaller co. investments have lost 3.77% in a day over the last 5 years ?

Erm, 100% I think. In fact most of them have lost that (and gained it) 10's of times. I think the record drop and recovery was IGP last summer from 30p to 15p and back again for no reason other than the market correction. And the most frequent up/down in a day was PGB which reliably went up and down by 10% some days.

So they can take their 3.77% and shove it where the Guinness book of records won't put it.

As usual however, I expect we'll just double the US's smaller stocks losses regardless of what p/e ratios we've got here.

[68steve] 27/2/2007 22:11

Looks like a sea of red tomorrow guys,imagine stop losses will be triggered,all good fun though :(

[taurusthebear] 27/2/2007 12:21

"In/out shake it all about. Hard to understand what motivates people, one minute they 're buying 100k at a time, th enext rushing in the opposite direction."

niggle - what you've got to understand is that many may have sold after the Shares tip, then bought back yesterday after considering the IC tip over the weekend, then sold again today after seeing the carnage in China, probably to buy back again later this week after China bounces, then to sell next week when Bush farts over Iran... etc. etc. For some, the wall of worry is a climbing one! ;0)

[hirschnathan] 27/2/2007 11:30

dgm? They arent in us. My post said buy.at

What I meant was that dgm used an external team to relaunch their site, but it seemed to have failed and costs high. Buy.at have done a similar thing by getting an outsider to launch the usa side. question is will it work