Happy girl,
I have to admit that longing internet stocks so far has made me tons of easy money because all I need to do is buy a .com before I even know what this puppy does and then in one or two hours I can count the 5k-20k I made and laugh all to the banks. Is there something seriously wrong with this scenary? I guess so.
Even the first tier nuts (AOL, YHOO!, AMZN,and to a lesser extent, CMGI and EBAY) don't have the fundamentals to support their current market cap. EBAY is benefiting tremendously from a tight float which consistently squeeze the shorts. YHOO! and AMZN did this also successfully. However, with the dramatic drop in the short size (25% decrease in YHOO! in Dec.), and increasing float (AMZN, YHOO! likely to follow), squeeze effect and demand-supply imbalance will be greatly reduced. In that case, I believe that lots of momentum gamblers will gradually leave the bandwagon because they will be disappointed with a 5-10 point sway daily instead of 20-40 point. You tell me what will happen with these issues at that time, and that time is coming.
Also isn't it true that when everyone is in and showing exuberant mania, the market is ripe for a serious crash? Never in my life have I seen the bull:bear ratio so high, and never have I seen so many amateurs wanting to grab a piece of the juice. Go to the AOL thread and you will find what an orgy is all about. When one post predicts that the issue is going to double or triple every three months, lots of followers believe that this can't be more accurate. Do you believe that piece of shit? If the idiot was right, AOL would have a market cap of 1.8-5.4 trillion (!) by the end of 99. Will that happen? In a traditional market, no way. But with fools running the market, I guess anything can happen.:) When will AOL ever make 10 billion even if they consistently adopt aggressive accounting method? Or YHOO! even making a 2 billion yearly revenue? Or AMZN ever making $$$?
thanx,
larry!
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