**OFF TOPIC**
Kal,
The appeal of the Internet stocks has become trendy, that's obvious. Also, astute traders have helped to create an environment where they can become rich! But overall, IMHO it's not as simple as you say. One would do well not to brush off the Internet sector. The out-of-sight prices on some of the stocks, while very risky, are based on forward projections of growth that will be more explosive than anything ever seen, therefore completely unquantifiable. And don't think the analysts/journalists are going to clear the matter up for you until it's already happened. Most have been bearish all the way up, a classic bullish indicator. The Internet has and will continue to revolutionize life; especially business; especially, especially retail. At the same time, the competition is not yet as incredibly brutal as it will be, either ("Your competition is only a click away"). For example, we are just beginning to see the era of the 'personalization' of products to suit the buyer. Look out.
If you may want to track one Internet which is up-and-coming, I suggest Mediconsult.com [MCNS]. It's in a sector that hasn't gone crazy yet (although the stock has recently made large percentage gains), is soon to report profits (take note), will be in the Dec. 14 Newsweek, and is still on the BB. Closed yesterday at 7.25/7.31. Yes, I own some. But a look at the chart will show that I don't require your money to send it up.
I'm not suggesting that you buy any of these stocks, but at the same time don't analyse them in a traditional sense. It doesn't work. Somtimes even charting is impossible (see ONSL and it's recent "pop").
Also, the market will continue to change due to the massive influx of the individual investor on the Net. There will be more volatility and more of the type of action we have seen in the Internet stocks. The rotation of fund money at whose mercy we have been for so long will now be equaled, rivalled, and stimulated by the Herd of individuals. We know most fund managers just FOLLOW the action. Now WE are creating some of it. The WSJ hasn't written up Mr. Pink and Tokyo Joe for nothing. They/we are a factor. Therefore I am going with what's happening, based on what I have said. Mr. Market has changed and will do some more. Stare at the tape of a few Internet stocks for a few weeks of sessions and you'll see it, if your eyes still work. Mine do.
Meanwhile, can the management at Syntel do anything to help those of us who like the company to reap some profits? Whatever happened to "here comes 40"? Maybe it wouldn't hurt to raise the Y2K flag just a bit in the New Year?! The panic will be here soon, hopefully ushering in the era of the Y2Knuts.
Again, all IMHO. Good luck with your investing.
Cheers,
Bond |
