Glenn:
<<<<Most analysts strongly recommended the purchase of these shares, saying they are
insulated more than many industries from the economic problems in Asia and Russia that
had triggered the market sell-off.>>>>
Are they also insulated from a reverse wealth effect when investors made less wealthy by stock declines pull money out of the market, particularly companies with 000 earnings let alone dividends????
<<<<<In addition, they noted the long-term outlook for online companies is excellent, as the
Internet transforms the way people work, shop, communicate and entertain themselves
and emerges as a whole new media like the television did a few decades ago.
"My view is that when we come back from summer vacations and get back to school
and start to buy stocks, the Internet sector will be one of the first groups to rebound,"
said Keith Benjamin, analyst with BancAmerica Robertson Stephens.>>>>>
Didn't he just say that the stock price may have to back up to catch up with the fundamentals????
<<<<<Moreover, there are new signs the Internet will become a mainstream consumer medium
sooner rather than later.
Nielsen Media Research this week said some 79 million Americans -- close to a third of
the population -- were now surfing the Internet. Falling personal computer prices are
expected to bring even more people online.>>>>>
Ok, bulls, I'm stumped which way is it? Will the future growth of internet use bring the increasing gorwth rates or will it just be more purchases by those already on line??? Cause, if 1/3 of the nation is already online (and you figure it's a much higher percentage of those with disposable income) and the amzn gorwth rate is already slowing, I'd say, that's not a good sign.
<<<<<The other salient point to remember about Internet stocks is that many of them, even
after Friday's steep drops, are way up for the year. >>>>>
OH, so we should still buy them??? |
