Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Lola who wrote (38426)	6/10/1999 8:43:00 PM
From: BRANDYBGOOD	Read Replies (1) of 122087

Lola, I think it's called the Domino effect. Individual investors fell in love with these "wave of the future" low float stocks. This caused phenomenal price increases in these stocks as the money inflow increased. Valuations were totally ignored as Joe Blow got very rich by buying these issues. It began with AOL YHOO CMGI etc., all first tier in the sector. Then began to spread to second and third tiers. In the mean time the institutions began to buy in hoping to increase those end of year percentage profit figures so near and dear to their hearts. They, of course bought 1st tier in the sector. Many are still in. (still ignoring traditional valuations) Now however, the sector is so diluted by the rash of net IPO's, the glitter is fading. "Can people really be that crazy and send these new companies' share prices to the moon just because it's the Internet?" Hell yes. They have, we've seen it many times over. I think the end is drawing near though. As Anthony says, the sector is way overbought even at these levels. (which still have ridiculous p/e's) JMO, B

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