If DOT and IIX has to move up and take out as I suspect this 50 days MA I would like..
<<A Rare Medium
Jun 6 2000 12:00AM
by Christian Deuber
Internet incubators continue to strengthen their e-marketing arms as they attempt to attract the anxious investors anticipating a NASDAQ comeback.
Companies like Rare Medium (RRRR: news, msgs) have been lost in the shadows recently as investors have soured on the prospects of owning shares of venture capital players. The millionaire maker stocks of the past year like CMGI (CMGI: news, msgs) and Internet Capital Group, Inc (ICGE: news, msgs) have fallen from glory and taken investors to the cleaners with stock price swings ranging from $215 all the way down to $8.
Money is starting to flow back into these Internet incubators as the companies strive to weed out the week start-ups and focus on the true technology infrastructure plays. Rare Medium invests in next generation Internet companies and provides end-to-end Internet Services. These services compete with those of pure e-marketing sector stocks as they encompass strategic and creative consulting for Web initiatives as well as online brand development and management.
As the Internet incubator stocks have fallen close to 80% from their 52-week highs, investors and analysts have started to glance in their directions once again. A renewed interest has presented itself in the incubators as recent reports continue to highlight the fact that many of the once invincible B2C and B2B firms are burning their gross profits on marketing expenditures and quickly running out of cash.
On one hand, the dot com competition in the major technology categories are weeding themselves out and on the other hand, the competitors are becoming desperate for financing. The Internet incubators have a win-win situation.
As the NASDAQ engine continues to choke like that old lawnmower just one pull away from roaring to life, the Internet incubators need to make their move. So what do they need to do? We?ll for starters they could act like Rare Medium and announce a partnership with IBM to offer technical help that will let service companies and large corporations hook thousands of cell phones, pagers, personal organizers and other electronics to information inside computer networks. Or, like Rare Medium, they could higher an experienced industry executive from Intel to manage emerging technologies in the broadband and wireless markets. Public relations is a powerful stimulant at a time when market confidence is low.
Over the last 5 trading days RRRR has gained 5 points while both CMGI and ICGE have climbed 14 points. The Internet incubators seem to be taking the appropriate steps to march back to the top of the charts where they once reigned supreme.>> |
