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Technology Stocks : Net Perceptions, Inc. (NETP)

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To: sws2001 who wrote (2090)11/30/1999 4:59:00 PM
From: Walt Corey   of 2908
 
I used the reference to the 20's Sid. I think what will happen is more pervasive then simply the wind going out of the bio tech sales or PC manufacturers. Those trends ended in a whimper. I think this one will end is a cathotic event. Issues like Dell, EMC, IBM etc may slide upwards of 10%, I think the NETPs, AMZNs, etc will slide closer to 50% or more. There is only a very slight endemic problem in the high tech market that a correction will (has) cure(d), the '.coms' will crash. a number divided by zero is an infinitely high number, a price divided by a negative earning is without definition. I do, however, agree with the authors that there is a rubber band effect trying to get valuations out of the alternate universe they've been in. Companies with outstanding earnings growth deserve high valuations, those with no earnings do not deserve even higher multiples. It's going to happen, it's not if, it's when.
Walt
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