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Technology Stocks : CMGI What is the latest news on this stock?
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To: MulhollandDrive who wrote (4127)1/18/1999 5:55:00 PM
From: Mark[ox5]   of 19700
 
Good point, its all about supply and demand. Right now on stocks such as CMGI you have people (like me) who will sell on a crazy run up like last week, looking to rebuy at levels such as now....

That is why these have support ... hordes of small guys willing to buy at 20-30% retracements.... however, if market sentiment changes or some huge bad news comes out, those willing to buy at 20-30% retracements pull back their buy orders and next thing you know, next support level is 50% down (see mid September for an example)

Internet stocks are done with fundamentals at this point, yes the strong will survive eventually, and valuations will eventually become plausible (if still high by most standards),, but a lot of 2nd, 3rd tier stocks will go down burning and/or be bought out by the big guys.
Right now best thing the sector has going for it is fixed supply of stock (xxx amount of shares in internet stocks in xxx amount of "real" internet companies) and insatiable demand. So it goes back to basic economics.. you have basically a fixed amount of supply (i.e. big deal MKTW just added 2.75M shares to the pot) and increasing demand (hey, did you hear Uncle Ernie made 276% in Yeehaw.com last year?? Maybe we should start that internet investing stuff!)

Mark
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