On the message boards:Burned by the hype
Burned by the hype
Investors rethink Linux
By Shawn Langlois, CBS MarketWatch
Last Update: 10:54 AM ET Dec 2, 1999 NewsWatch Join the discussion
Linux giveth ... and Linux taketh away. This sobering truth has started to dampen the spirits of some "quick buck" investors recently burned by latching on to that shooting star, Linux-play du jour.
For example: Last week, Ariel Corp. (adsp) felt a euphoric surge on the heels of a Linux-related news release, only to suffer a complete flip-flop when the craziness subsided. The about-face left shareholders scratching their heads on the message boards.
SlpryPete was adrift in the ADSP carnage on CBS MarketWatch: "I bought in just under 20. Looking for a bounce back - was the run-up really all hype? I'm losin' my shirt at the moment." And plenty of bitterness came from Lochster: "This company was misrepresented on all the news. This stock is a loser. Voodoo and spells on this wannabe company."
No lessons learned, however, as many investors fell into the same trap -- this week's case study: V-ONE Corp. Riding the wave of relentless chat room pumping and Linux hoopla, much like ADSP did last week, shares of V-ONE (vone) experienced quite a roller coaster ride of their own. And, once again, investor's hit the message boards in search of answers.
CharlesPonzi recognized the pattern on Raging Bull: "Watching a new ADSP in progress -- VONE -- A lot of longs and shorts are going to feel the pain all over again. History repeats."
It seems like just yesterday that nothing but bullish buzz about the Linux Golden Goose could be found. Now the cyber-world is littered with the likes of DotComYoMomma: "Good grief people, know what your buying before you throw good money after hype and hoopla. Anything Linux sucks!" So very fickle -- I guess a 50 percent haircut can really shake up investor sentiment.
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Time for a dose of reality, according to NetShort on Yahoo: "This piddly little company has had no success, I repeat, no success marketing and selling VONE's so called 'security' products for some time now - gross revenues have grown at a very slow rate and net income has been a non-matter. The total lack of knowledge concerning this company's real business and the pie in the sky effects Linux could have on their business is mind boggling. Wake up folks, they don't offer, distribute or sell Linux software, they just have a Linux compatible product!"
Then there were some, like Aubie1, who weren't quite ready to abandon ship: " After doing a good bit of research and following this company's story the past 6 months, I have added to my position, and I'm recently anticipating their new products and their complete managerial turnaround and commitment to the future. This was a $3 company that has made some tremendous advancements to position themselves strongly in today's market. They not only support Linux but also have windows capabilities. Daytraders will come and go as this stock progresses."
Sure, topsy-turvy performances from stocks like ADSP and VONE have dealt a blow to investors chanting the "just add Linux" mantra, but the buzz still rages on across the message boards. As long as Red Hat and others continue to flex their muscle, the search for the Linux gems will continue.
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