I think, us more cautious investors need to be careful on betting this internet hype down.
I was tempted to play the internet index (IIX) down, today but, lets be honest, a few of the many, might make it, big time.
The problem, I face is, who will, and who, will not??
Wall Street, until today Is, treating them, all the same. So the best way to make big bucks is, to pick out the one's that CAN'Tmake it 2-6 yrs out.
My investment style has always been to buy, what I considered, to be the best of a wonderful bunch. Mrk,Ibm,Cci,P&g,Cisco, etc, etc.
Wall Street has chosen to take almost all of the internet stocks and give them a similar valuation. . I don't think you have to be a rocket scientist, to figure out the potential winners from the out & out can't, return, the #'s, That, Wall Street expected.
My No 1 pick (inmhop, of course) of the losers, is Amazon.com (Amzn).
It's not because, I have a personal problem, quite the opposite (I bought a book from them last Sunday, for only 19.95 plus shipping, with NO, state sales tax), that ended up in my hands on Tues.
The Ceo seems to have his shit together, (my god, give him credit for getting it this far, with spectacular results).
Why is Amzn my No1 choice to fail? Because, IF, Amzn does EVERYTHING right, their net profit, would not beat one successful, McDonalds store.
The profit margins are better selling golf balls, than books, already, and can you imagine what will happen to them, when B&N and the rest go after Amzn tooth for tooth??.
My No1 choice to make it? Yep you guessed it, Aol (the stock I shorted @ 100,105,116)!
Why No1? Michael Dell, Bill Gates and Steve Ballmer are considered to be high tech's best ever salesmen, Case and Pitman will soon share the No1 spot. Wait and see, again (IMHOP, of course).
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