Paul,
Airlines go opposite of fuel prices because that's how their
profits are affected: inversely.
But if that's what the buyers are thinking is going on here,
I think they're just plain wrong. Cheap computers will
NOT mean windfall profits for the internet companies!
I think the present sharp divergence between the NAZ as a
whole (arguably dominated by computer hardware, networking,
communications, and software) and the e-merchants is
short-lived for one simple reason. Competition.
Competition with each other. And competition with Asia.
Competition and the Asia/Pacific collapse is what hurt INTC,
MOT, and CPQ.
Why should it be any different for AOL, YHOO, XCIT, LCOS, SEEK,
AMZN, etc.?
These companies are not going to make any big money because they
will all have to compete with each other and any new entrants.
When people realize that these darling hot new companies are not
going to be making any money for a very long time, if at all,
why should they keep on buying them?
Profits is the be all and end all of The Street.
or maybe we have a new paradigm. dreams of profits.
Doubt it!
And the price weakness today and news is inclining me to put in
a DAY order to sell/short AOL @ 124 or 125, not sure yet,
and not worry about it. The chart shows plenty of sellers
every time AOL gets over 124 so I won't be lonely.
Cheers,
David |
