Bullitt> Great post. Thanks. A real insight into how these new tech companies are handling their beaten up stock prices internally. The e-mail really highlighted what I've been saying here...that a stock and the company it represents are two different things, and it is perfectly reasonable to treat them as such. Naturally we think that if the stock goes down the company must suck, and if the stock goes up it must be wonderful. This psychology causes a lot of people to sell their losers at their lows instead of simply riding them out, and as a result throw their money down the tubes. And the financial press amplifies whatever the prevailing trend in the market is, because that's what people want to read. Now the techs are being demolished, we have articles about cash burn rates, and so on. When the tech thing starts back up (assuming it does!), we'll suddenly get the positive articles back. USIX the stock has a chart that mirrors lots of other tech stocks and reflects the market's changing perception and demands. I don't expect USIX the stock to do much for several months, nor do I expect any of the recent IPOs that I follow to do much. Like the e-mail said, the market is currently looking for profits and is unkind to concepts, so we'll have to wait until the tech party gets going again maybe late this year, for the new-wave of Internet infrastructure and app delivery stocks (*) to show much sign of life.
(*) There's a lot of stocks in this category, but the ones I follow personally include USIX, KEYN, INAP, GRIC, and very recent IPOs STOR, CRIO and EQIX. |
