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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end?
YHOO 52.580.0%Jun 26 5:00 PM EST

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To: Cheeky Kid who wrote (2886)5/24/2000 2:07:00 PM
From: Mad2  Read Replies (1) of 3543
 
CK, No doubt the internet thing is neat and will change things as have other inovations before it (eg telephone, radio, TV, RR's etc...).
We are comming out of that <honeymoon period where valuations have been based on absurdity and imagination. As in the case of marrage and the honeymoon, valuations have envisioned only the (good) possibilities and have discounted or ignored the realities (earnings and cash flow).
Well, now that its the morning after (prompted a bit by the Fed) and financiers, VC's and investors are beginning to consider what the future may be like, without the unrestricted flow of capital.
Its going to be a interesting 3-18 months (hope it doesn't last longer than that) to see how things play out in a restricted money environment, particularily given the techs as a group aren't know for their positive cash flow.
Mad2
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