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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.08-0.2%3:59 PM EST

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To: Eric Wells who wrote (88272)12/21/1999 11:06:00 PM
From: Glenn D. Rudolph  Read Replies (2) of 164684
 
2. A lack of rules may be causing large sums of money to be diverted into businesses that don't have sound business
models. This is always a risk. But I would argue that there are large sums of money flowing toward dot-com and b2b
companies with little critical review of company business models, and little or no analysis of projected revenues and
profits. Money flows to these companies directly through IPOs, as stock currency, and as rewards to executive insiders
who own large numbers of stock options. One could make a strong argument that if investors become less critical in
evaluating fundamentals that there is an increased risk that capital will be wasted on companies that don't have strong
business models. I would argue that this is happening at a level not seen in our markets in quite some time.


Eric,

Excellent post. The capital currently being wasted is a huge number in my opinion and to a great degree is offsetting the productivity that may be gained by the use of technology. Therefore, many people are living a lower finanacial standard of living due to the waste of so many resources.

Glenn
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