First, I'd say the third and fourth string players, which means LCOS and SEEK. YHOO and XCIT will probably survive, though not at these levels. Lots of the little guys will not.
Second, I'd have to point to companies in a non-differentiated business with looming competition from companies much bigger than them, and much more able to sustain losses. That would be AMZN. Barnes and Nobles are running ads on Stern in the morning, which is VERY expensive stuff, but they can afford it indefinitely if that's what it takes to build themselves up. AMZN can't.
Third, I'd go after YHOO and XCIT, purely on a valuation basis.
Of course, in this market, having earnings may actually be a negative. Earnings can come in below expectations, while "development stage" companies with no earnings don't generally get a chance to disappoint.
mg |
