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Technology Stocks : barnesandnoble.com (BNBN)
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To: Bird who wrote (281)6/15/1999 5:28:00 PM
From: Stephen  Read Replies (2) of 766
 
Bird, More and more, this market is driven by the short term events rather than fundamentals. Now, history says fundamentals always win out in the end .... but who knows when that end will show up ??.

Prices in these issues are being impacted more by trading than investing ... so the thing to look for in a 'good stock' are the 3 e's .... events, earnings & e-commerce. AOL has always been the master of this game over the last couple of years... especially with events. Whenever the stock price started to slip (when the shorts got in), Steve Case & co would issue a press release ... which cause the shorts to cover and brought in the momentum players. They have been masters.

As for earnings ... as long as they manage the numbers and meet them, its revenue growth that matters to the 'investors' (rightly or wrongly).

And remember, although the experience is different if one likes going to a BKS store, BNBN often offers the books cheaper so is cannabilising BKS to some extent. This is one of the cited dangers of companies going onto the internet ... that it actually hurts the margins of the parent if they are to compete.

Bottom line for me is that the bulk of growth in the sector is on the internet ... and with pressure on margins I see BKS perceived as a stock with its best days behind it. Conversely, BNBN is perceived as the future ... which people are more likely to buy than the past.

This is all how I see the perception and the market. Not my personal feelings !!

Stephen

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