"Making a Million in Internets" . For each dollar there is to be made in internets there is one to be lost. Why? Because most of the people who have something to say about internets on CNBC or in many other forms of media do not know what they are talking about, period. This has gave birth to an uneducated investing public when it comes to internets.
Case in point (without naming names). On CNBC's New Years shows one of Wall Street's best known was trying to field questions on internet stocks. Not that they planned to talk about internets but that is what the callers wanted to talk about. When asked about one of the top five internets the "expert" said he didn't follow it. He doesn't follow it but it is one of the "internets" he has an opinion on (that people listen to). That's the problem, often media "experts" have opinions based on what they don't know about.
Part of the reason the media in general has no clue about internets stocks is due to the use of the term "internet stocks". There are no two internets companies that have the same product but yet they are all talked about as if they are one.
More important the companies are all in different lines of work, some are IAPs, Internet Access Providers (eg AOL), some are ICPs, Internet Content Providers (eg web sites, information, etc), ISPs, Internet Service Providers, etc. The point being a web site will never have the revs an IAP will have. The same is true of advertising dollars. Which brings us to the most important fact. Some internets are making money and some never will.
Before I would ever have a penny in any company I like to see certain things, like earnings, growth, increasing revs, etc. This is true of most investors but they forget this when it comes to internets. In the morning a hot internet IPO will come out and money will flow from those just wishing to make money off of an internet. That money would be better spent on AOL, CMGI, GNET (internets making money) or any one of the internets that were downgraded today.
The best way to make money in internets is to do your own homework, not pay any attention to media "experts" and don't sell because CNBC freaks out over a fifty point drop in a market at 9200.
Be a free thinker, have a vision, a plan and stick to it. This afternoon they said the S&P and Nas were negative for the year. That means many on Wall Street aren't having a great New Year. They should learn about internets, they could be up 200% or more if they did, you know 909 their money.
Main points: Don't listen to an "expert", do your own homework and you will be the expert. Invest in class not maybes. Have vision and a plan and don't let CNBC or anyone else hype you out of it.
Next post: If you are going to own internets, you should own these (and why). Homework: Study a one year chart of AOL, CMGI, GNET and YHOO. Notice anything? 909 BLUE
PS CNBC reports the sky is falling and a big bad internet sell off but our GNET was up 3 3/4 (what did the one eyed cowboy say?).
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