Internet Stocks/YHOO, SEEK, LCOS, XCIT
Saw the following this a.m. This a good description of momentum stocks. There is a comment in the article which esentially states that these are safe stocks, and investors are buying that!!
Still short YHOO and I am needing a much longer straw as I continue to go deeper under water. Patience!!
Bob T.
>>INTERNET STOCKS: This sector, like may others in the stock market, stopped trading on fundamentals a long time ago. However, for the first time in a long while, there is a reason, that can be perceived as legitimate, for the groups' impressive advance over the past week. Believe it or not, Internet stocks are now being viewed as a safe-haven: an area of the market that is largely shielded from the Asian contagion. Second, and most important, is the prospect of strengthening ad revenues. By and large, online advertising revenue was anemic in 1997. However, analysts and researchers have recently become extremely bullish on ad rates and revenues for the coming year. Will there projections prove to be correct once we tally up the numbers a year from now? At this point in the game it really doesn't matter. What is important is that investors are buying it. Just take a look at the most prominent Internet names and see what you find: America Online (AOL) +3% and less than 3% from its one-year high; Yahoo (YHOO) trading at a new 52-week high; Lycos (LCOS) +3% and less than 2 pts off its one-year high; Excite (XCIT) +5% and up 22% over the past week; Infoseek (SEEK) up 23% today.<<
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