Hoops - I'm a little confused. Consider the following:
1) In these wild times, people really don't care about historical profits. They are betting on the future. YHOO a few weeks ago was at 127 and issued a profit warning stating that they will be in the red and much worse than projections. What happened? Stock went from 127 to 170. Amazon makes no profit, will be making no profit Q2, and everyone is buying it. In short, people know that computers and the internet are the near term future and are throwing everything they can at it.
2) If people are buying because they expect Internet takeovers, sky high stock prices are not going to help. When the sell off starts, it will be sharp. YHOO went from 125 to 103 in a few days earlier this year. Since there is no profit few assets in most of these companies all the investment money is emotional hype money and that's why you can have sharp drops.
3) If it is the future they are buying, CPQ is bound to have some appeal. It is not hype-money. Every analyst alive is saying it is a good buy. Also, when CPQ does show profit, they have the ability to show massive profit. Most Internet stocks do not.
4) On NSCP: Browsers are now a part of the OS. It is the duty of the OS to see the web as a LAN. Whatever you use to do that with is, by definition, a web browser. I suppose you can hope that NSCP will be bought out by a OS with tons of money, but who?
IBM? - They have no OS.
SUN? - Not much money there.
CPQ/DEC? - Sorry, already married to IE.
APPLE? - They don't even want to buy display postscript.
Also consider that any OS owner will have to rewrite a lot of code to make their system see the Internet as a LAN. The reason people like Sun have not done this is because the investment is too high and you wind up with a non-industry standard.
I can't imagine a great future for NSCP.
Rather than play riverboat gambler with wild stocks that have no firm foundation, wouldn't you rather bet on CPQ, CSCO, MSFT, etc.? |
