As a senior software consultant who works at the corporate HQ of Fortune 500 companies, I have to disagree with the strategy of buying puts on software / computer / web companies.
2000 will be a year of explosive growth, particularly for Internet and web companies. In 2000 corporate American is going to jump on the web like they never have before. Anyone who reads the leading weekly magazine for corporate software managers (ComputerWorld) knows this. In interviews the leaders of large and mid-size companies discuss their plans.
I personally believe that people who talk about "dot.com" companies that have "no profits" are clueless about what's really going on. New companies often don't have profits right away. Look, for example, at how long it took before the USA Today newspaper had profits. They published for quite a while before that happened. People who point to new companies and tell us they don't have profits aren't telling us much.
Not every new web venture will succeed. But this ability to connect computers via the Internet is a huge revolution. Still, some people don't get it. Only a few months ago one commentator wrote, "the Web is real." Well, duh! Amazingly, some people are only just now figuring this out, while others are still in the dark.
Especially clueless is Barrons, a bunch of the most smug and yet uninformed people I've seen. Their lead editorials by AA just reek of a know-it-all attitude. They think they are soooo smart, but they are actaully soooo uninformed. How ironic.
The proof is in the pudding. Over the last five years they have missed the investment opportunity of a lifetime.
Now they are about to miss out on another great year.
Buy puts? This year? You've *got* to be kidding. |
