Justin,
You raise some legitimate questions, but I'm not sure they're completely relevant at this point. Your use of the term "mob psychology" is exactly on the money, but isn't that true of the Internet as a whole? I mean, seriously, look at the marketing job that has been done in recent years of conditioning the average American citizen to equate the terms "Internet" "on-line" et al, with superior (i.e. necessary) technology that enhances everyday life. My mother can't even balance her checkbook, but she forks over money each month to AOL because she thinks it's important to be on-line, even though she never logs in to use the service. Add to that the fact that more and more average citizens are investing in the stock market each year. Add to that the proliferation of message boards and such to aid in the distribution of news about stocks like NETZ that would have in years past gone unnoticed. All of which is a long-winded way of saying that the normal questions and concerns that have governed investing intelligently aren't necessarily applicable to investing today, especially when dealing with "hot" Internet stocks. I mean, honestly, does anyone believe that AOL or AMZN or DCLK is fairly valued at the moment? Sure, if NETZ turns out to be an inferior service then the stock price will suffer. But, in today's world, it could easily be sitting at $20 when we start to see that suffering. Is that rational? Of course not. Is it even fair or reasonable? Nope. Have people profited enough in the last two days alone to take an extended vacation from work? You betcha. |
