If one's goal is to buy a stock at, say, .60, hold it for several years, and watch it grow to $36, $32, $16, whatever, then, yes, one is several years too late on ALYD.
If one is looking to buy stock in a company where one can use "traditional" market criteria in an evaluation process, then avoid the Y2K, and for that matter, internet, sectors as the PEs are crazy.
If one is more comfortable in a sector where analysts reports are tied into historical performance, avoid the Y2K sector as Y2K is a once in a millennium phenomenon.
On the other hand, if one is betting that Y2K, as noted economist Ed Yardini predicts, has a 60% chance to cause a global recession, and that momentum investing is largely based on emotion, then roll up your sleeves and grab the Pepto, because this sector is for you (gg).
As a side note, I agree with noted Y2K speaker, Dennis Grabow, that we will all soon be basing our investment decisions on how Y2K compliant companies are and how compliant their supply chain is (i.e. those people to whom they outsource for materials). At that point, "traditional" investing will be set on its ear!
- Jeff |
