I see many comments on this board on YAHOO worrying about GNET. I love those shorters out there talking about GNET dipping down again into the low teens or single digits. Sometimes when you see a stock drop from 50 to nearly 30 you get the feeling the company is going out of business. How easy it is to forget that the stock shot up fast as a cannon, why do people worry when it falls nearly as fast? It is almost a like a law of nature when that happens, especially to internet stocks.
To those longs out there who are upside down in the stock, ask yourself this question. At what price would it be wise to short this stock? Do you think this stock at this same time in '99 would be worth more or less than it is today. Will internet usage be increasing or decreasing? Will people be buying more or less on the internet next year? Will sites like Playsite be used more or less? More PC's in the home or fewer? Ask yourself these questions before buying or selling.
Now, of all the internet companies out there, how many have figured out how to turn a profit? Remember, you buy a stock because of that company's prospects of profitability, not because of cool technology. You want to buy cool technology, go buy XYBR, the maker of wearable PC's. Cool stuff, but not very likely to be mainstream any day soon, and IMHO very unlikely to turn a profit anytime in the next 5 years. GNET, on the other hand, has a strong, experienced management team that knows how to make money off the internet, and in my opinion, that puts them way ahead in this game. Of the thousands of internet companies out there, only a small percentage will ever determine how sustain profitability. GNET is not a household name today, and may never be, but if they can show profitability quarter after quarter, they will climb to the top of the heap from an investor's point of view.
Look at the business, not short term stock fluctuations. |
