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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year
PSFT 0.00010000.0%Oct 29 5:00 PM EST
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To: LLCoolG who wrote (3749)11/29/1998 3:06:00 PM
From: Chuzzlewit  Read Replies (2) of 4509
 
LL, when you say Any Net stock has been much better than PSFT. this is what I'm talking about. The runup in the internet stock is not about earnings. Its about greater fools. Compare PSFT and AMZN for earnings. AMZN does not show a gross profit. Better yet, compare AMZN with BKS, and then look at how the two companies are valued. I chose BKS because it is in the same business as AMZN.

What I'm trying to say is that an investor puts money into a company because he expects that company to generate significant cash flow from operations. A gambler puts money into an internet company because he figures somebody will pay more for it than he did. The difference is the investor is looking at earnings and cash flow as the motivator. The gambler is looking at other fools to take him out. Considering that PT Barnum made a living out of exploiting fools, there is no telling when the supply of the foolish will be exhausted -- or the depth of the supply of the greater fools for that matter.

There are people who stand to lose a great deal of money by playing with these portal and fly by night companies. I think that the real internet money will be made by people who invest in either companies like ASND, CSCO, TLAB etc. (suppliers of the hardware) or companies like DELL who have demonstrated proficiency in using the internet to generate cash flow.

TTFN,
CTC

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