Making Money in Technology
After the Bubble, page 27
The “Zombie” Company: Taking Down a “Living Dead” Business, continued
If you know that a company is going down, the first thing to do is to take expenses down as low as possible.
Ongoing development efforts should be curtailed. The technology team should be cut to the bone, with only
“superstars” remaining. Everyone else who is not crucial to operations should be laid-off. Possibly, the
company should be moved to smaller, cheaper offices.
The next step is to shop the customers, team, and technology. The specifics of this will vary from situation
to situation. But, almost invariably, there is something to sell.
Public Investment Strategies and Tactics
The future direction of the stock market is always uncertain. There are no foolproof predictive methods.
It’s particularly difficult to make this assessment in the current climate. The true direction of the
technology market is unclear. Has it bottomed, or will it go down again? In the meantime, the markets are
subject to substantial volatility.
There’s no clear answer as to how these contradictory trends will resolve. But plenty of bouncing around
and wild volatility is a safe bet.
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