But eventually stock price will come into line with revenues, that is certain, only the timing is uncertain.
One other thing that is uncertain is the path by which this convergence will occur. Will the price come down to be in line with earnings, or will the rate of increase merely slow to allow earnings to catch up?
Back when Warren Buffett made his famous "one question exam" remark about net stocks, a lot of Internet bears took it as a sign that Buffett was on their side. What none of them appeared to realize was that his "F" grade would equally go to anyone who opined that net stocks were overvalued, as those who maintained they were fairly or undervalued.
All this year, I've heard hundreds of people, more than I could ever debate with, go on and on about how much of a "slam dunk" a short sale of Internet stock X is, only to see them squeezed a week later.
The worst part of it all is, the bear arguments never change. The same rationales that killed the bears in April did it all over again in June, and again in September. And now here you are carefully explaining all over again why shorting the Internet is the right play, and it's the SAME THING YOU SAID ABOUT THE INTERNET IN JANUARY!!
Maybe being 250% in the hole on your picks means nothing to you, but I for one would at least be trying to figure out what went wrong. At least Wexler admitted he had misjudged a couple of net-based stocks. But here you still are, plugging away, when the track record says that you're going to get, if not your own head, the heads of a gaggle of the less nimble of your followers handed to you, and you have nothing but the same theories you had before to say that this time will be any different.
It's like a car wreck combined with the movie "Groundhog Day". And it's getting so I can't stand to watch anymore. If I hear one more net stock to tulip bulb analogy I swear I am going to vomit. |
