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Technology Stocks : Net Perceptions, Inc. (NETP)

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To: rupert1 who wrote (2671)8/12/2000 8:45:43 AM
From: Carl R.  Read Replies (3) of 2908
 
I guess the proof is in the pudding. Compare a graph of the DOT index over the last several years to a graph of the biotech index from 1990. I had a link to such a comparison, but I can't seem to find it right now, though I do have a printed version sitting in front of me. The graphs are eerily identical, down to even the timing of minor corrections and the percentage changes of the moves. The interesting thing about the internet bubble is that there are really two separate bubble patterns.

Projecting the future of the the DOT index based on the biotech bubble, the DOT should stay between 600 and 800 until the end of the year, and then should move to 900 or so next January before returning to 700. I don't put much stock in such a forecast, but on the other hand it is at least as likely as any other forecast I can think of.

I expect that some companies with sound business plans (e.g. NETP) will continue to grow and move towards profitability, and they will do well, while others (e.g. "the cash suckers") will continue to slide into oblivion, with the net result that the index stays flat.

Carl
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