Now that we have had a nice correction in the internet sector it's time (IMHO) to jump on the niche leaders... with the caveat that if there is a catastrophic market correction than all bets are off of course. But if you invest thinking something catastrophic is around the bend at all times, you will be sitting on cash under your mattress all the time.
Here are the internet stocks I think have the best chance for success in the next 1-6 months - and the ones I will be concentrating one. (and why)
What do most have in common? The things that YHOO or AMZN had about 2 years ago... leaders, small floats, great niches. Im not saying any will be the next YHOO or AMZN, but they have better stock potential at this point as $1-$5 B Market cap companies than does $30B YHOO.
Internet banks... undervalued (small market caps), small floats
* NTBK
* TBFC
Internet security... small floats, $2B or less market caps, LEADERS
* VRSN
* ISSX
Audio/Video on the web... small floats, $2 to $2.5B market caps, LEADERS
* BCST
* RNWK
#8th most trafic web site, community, waiting to be bought out. Small float, sub $1B market cap
* XMCM (like it much better than TGLO although they will move together)
#10 most traffic web site, profitable, splitting 3/8, low float, great content, part owner of a portal, reasonable market cap
* CNET
#11 most traffic web site, low revenues, but splitting and tiny float and attractive eyeball appeal to advertisers - aggregrator of web sites - buyout candidate
* GNET
#1 internet advertiser, decent float, sub $2B market cap, LEADER
* DCLK
#1 co-hoster, small float, splitting in April, resiliant in latest sell off, LEADER
* EXDS
Internet architecture, caching, search engine technology, overreaction in stock price to MSFT going with Alta Vista (owned by Compaq- it's biggest customer) vs Inktomi, new shopping comparison software set to be released within a month (only negative is big float), LEADER
* INKT
Big float for internet co. but safest way to playu the net, IPO incubator
* CMGI
Business ISP brought to board 2 weeks ago by Laz... seems very undervalued, probably because it is spending money like a mad man.. but 2-3 years out this one could be huge or bought out. Decent float, low market cap
* VRIO
A chip in every broadband device; hands in xDSL, cable technology, hands everywhere. A rock. Splitting this week, LEADER
* BRCM
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