Just posted at Raging Bull by Stock Tycoon.
By: StockTycoon
Reply To: None Monday, 7 Jun 1999 at 11:52 AM EDT
Post # of 1931
=~-_ eCOMMERCE NEWSLETTER 6/7/99 _-~=
** Click below for the OTCBB eCommerce INDEX **
geocities.com
Well, it was a roller-coaster week for the stock market; especially the internet stocks. One very noticable fundamental was the OTC eCommerce Stocks faired BETTER than most Net Stocks. We do believe there are still rocky times ahead for the stock market, but we are still VERY BULLISH long term. Why? Let me explain the fundamentals our research has uncovered these past few months. EVERY DAY there are over 70,000 NEW PEOPLE logging on to the internet for the VERY FIRST TIME. In a few years, the number of households using the internet to purchase goods as inexpensively as possible will be phenominal. I know INTEREST RATES have been the main focus the week, but do you see how the Internet is fundamentally a DE-FLATIONARY CONCEPT? People will begin to shop online for the most competetive prices (I love Amazon.com); forcing the cost of goods to an ALL-TIME-LOW. How can prices rise in the face of the competition on the internet that makes every business-owner a possible competitor? I like to call the Internet the 'Great Business Equalizer.' EBAY was founded upon the premise of matching buyers and sellers. I know it is hard to HOLD your net stock positions in the face of falling stock prices, but if you have a vision of where the revenue growth is headed - you understand how these stocks are truly undervalued. Some people equate net stocks to the Tulip-mania of the past. Do you think that a tulip will FUNDAMENTALLY CHANGE THE WAY WE DO BUSINESS? The internet will. Remember the biotech craze? Let me ask you, "Will a biotech company change the way we do business?" I don't think so. Sure, a biotech company might discover the cure for an illness that has been plagueing mankind for many years, but THAT ALONE won't REVOLUTIONIZE THE BUSINESS INDUSTRY. Also, If you look at the charts on friday about 3pm, you might notice a shift in sentiment. Many of the larger institutions started buying the Net Stocks again. This is a very good sign and might signal the bottom of the downtrend. Here's the 1 day chart for AOL: (http://quote.yahoo.com/q?s=AOL&d=1d). See how much money went IN to the Bell-Weather Blue Chip right before the weekend? Whew. Enough of the soap box; we are LONG-TERM investors.
Oh, just a little note to stop by the eCOMMERCE INDEX Web site (www.geocities.com/WallStreet/District/7516/) and see the changes. Expect MONSTER GROWTH with the site in the upcoming months as we hire a professional web-site design company to do a new face-lift. Also, We will also be moving the eMail Newsletter to another server. Can you believe we maxed out the Raging Bull Mail Lists!
Thank you to all eCommerce readers who have submitted recommendations for the Index. We pass them to our research area and begin due dilligence to dig out the details of the company. To be honest, there are very few companies in the OTC stock market that we think deserve your investing dollar. Many OTC stocks are the targets of Pump and Dumps (over-hyping a stock to unload it on the investing public), and we try to steer you clear of those. We only look for real companies that have Explosive Growth potential and are CURRENTLY UNDERVALUED based on that GROWTH. When a company is going to be added to the eCommerce INDEX we will let you know before it is featured and include the relevent research for you to explore. Happy eCommerce Investing.
-Stock Tycoon
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