Heinz,
Post of the month.
One thing, though,
>>*nobody* knows how far the mania may carry the market
But we already know- AOL at 175 (market cap of $189B) , YHOO at 240 ($54B), SCH 150 ($61B) and the funniest of them all - AMZN at 220 ($35B).
Let me rephrase that:
An ISP worth $189,000,000,000.00
A portal, virtual nothingness, worth $54,000,000,000.00
A discount broker, one of many, worth $61,000,000,000.00, almost twice the worth of Merrill.
And the crown jewel- A virtual bookstore, well, a books and CDs store, that never made a cent and probably never will, and which bonds are junk, selling for the modest some of $35,000,000,000.00, almost twice the worth of Sears.
I put in all the zeros to make a point. The point is that everybody got used to the insane valuations attributed to companies that smell of internet, and nobody is surprised anymore when another stock quadruples its worth from Billions to tens of Billions in a matter of weeks. Hell, it's EXPECTED. The surprise is when AOL doesn't double it's worth again to $380B, but is being cut in half instead.
This was the greatest bubble of all times indeed.
It created 30-35 years old self made Billionaires by the dozen.
It made tens of thousands of people think seriously about quitting their day jobs and turning to full time speculators. Some of them did.
I believe that the bubble cannot be inflated anymore. The hot air is coming out of many small holes already in a rate exceeding the inflow.
OTOH increasing the inflow will only reap bigger holes.
It may be over already.
BWDIK?
ATG |
