I hope this hasn't been posted here yet. found on MSGI board.
TheStreet.com
GE Brings Net Stocks to Life
By James J. Cramer
4/13/99 10:48 AM ET
You see this Net rally? You know what it is about? It hit me like an anvil ripping through my bald pate: It's GE (GE:NYSE), stupid! This Xoom.com (XMCM:Nasdaq) bid/no-bid/mulled bid was by General Electric, according to XMCM. And it didn't go through!!
So everyone is playing. Who is next? Whom is GE going to buy? And they are thinking, well, GE wants to dominate whatever business it is in, so who is dominant in the Web? Let's go buy dominance, thinking that GE will take us out. Even lowly Lycos (LCOS:Nasdaq) is benefiting from this speculation..
GE is another company that discovered the Net post-Pittman. BP, before Pittman, and AP, after Pittman, is how I look at the Net. Before Bob Pittman came to AOL (AOL:NYSE), it wasn't clear whether AOL was going to pay offline or offline was going to pay online. It wasn't clear who had the upper hand. Pittman eliminated that question. You have to pay AOL. And Yahoo! (YHOO:Nasdaq). And everybody else. The Net has the upper hand. Heck, the Net has both hands!!
Now GE is scrambling, too. If GE scrambles, some eggs get broken.
So the chase is on to find out whom GE wants to buy. And there goes the DOT to record highs.
Somehow, I don't have an image of Jack Welch coming in at the top of the tulip market or the South Sea Bubble. Guess we have further to run. |
