Glenn and all, I tend to agree when I don't see the US economy collapsing for the next 10 years, but I think there is a VERY high probability that the internut stock mania will finally end. When I say end, I mean these stocks will start trading according to value fundamentals with a slight premium for future growth. Since every single internut stock projects huge profits as step #1 of the business plan prospectus, you MUST take everyone's projections as a "fat chance" scenario.
Revenue growth, which is easy to do if you're giving away $1.00 for 90 cents, will cease to be a reason for P/S ratios of 300:1, etc.
Glenn, look at it this way. What would your portfolio look like if every stock in it were priced at microsoft's PE? I mean, microsoft, turning in ever increasing profits for 20 years, there's a low-risk proposition with a P/E around 60.
Apply a P/E of 60 to the internuts, and you'll be hard pressed to find a single one outside of CSCO/DELL that will be above 10 bucks.
I can understand why you believe a 50% haircut across the board is impossible, but you MUST understand that another 50% haircut applied to the internuts would still leave them overvalued by a factor of 4 or 5.. Hardly an "impossible" scenario, don't you think?
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