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Technology Stocks : STARBASE (SBAS)- InfoWorld Hot Product Review

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To: SIer formerly known as Joe B. who wrote (1120)2/21/2000 1:19:00 PM
From: E. Davies   of 1502
 
IMO you are out of mind. When the market corrects stocks that are up over 1000% in the last 4 months like SBAS will get creamed

Goes to show how insane this market has gotten when a stock like SBAS can be labled "fundamentally stronger". The scary thing is that its true- it is stronger than a lot of other hot stocks out there! They have real products, real sales, and real growth. Of course the valuation relative to those sales is pretty huge.

I'm not certain a market correction is going to take the more typical form where all stocks sell at once. A lot of the market has been correcting already. Dow is *way* down and Nasdaq is really being propped up mostly by INTC and CSCO. When those fall the money might simply rotate somewhere else.

There are a few remaining hot fields- mostly smaller stocks with good growth potential. I'm uncertain how hard they will be hit with the bigger names since in general they don't tend to track "the market".

If the market ever returns to caring about boring stuff like present value of future earnings stocks like SBAS will be in for a very rough ride. But I don't see it happening anytime soon.

Eric
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