Re: Fwd: Mega 890 is on the air...

[SteveOrdinetz <steveord@bit-net.com>]

Aaron Read wrote:

>A lot of AM stations were purchased for ridiculously high prices over the 
>past few years, with a stinker like WALE going for $2.3 million just being 
>the latest example.   The obvious reason is that people are betting that 
>IBOC will drive up AM values even further, so paying "a lot" now is 
>nothing compared to selling for "a WHOLE lot" when the audio quality 
>shoots up thanks to IBOC.
>
>So here's my thought exercise for everyone: will the value of these AM's 
>plummet because IBOC is now on-hold indefinitely? (although most everyone 
>is expecting the problems to be solved ASAP)    Will a lot of 
>marginally-solvent buyers go under waiting for IBOC to come around?


Keep in mind that a crummy signal is a crummy signal (programming 
notwithstanding)...if your signal doesn't cover a substantial population 
base in analog, it won't in digital either.  Even if IBOC becomes reality, 
I can't picture people rushing out in droves to buy digital 
receivers.  Witness AM stereo.

As to the ever-escalating prices, it appears that the "bigger fool" theory 
is still in practice.