Dear Joe, Sorry, I didn't get a chance to reply to your post about the Y2K sector,I use that term openly,though!!
Basically,to prevent ma & pa investors, and large brokerage houses to
stampede this sector,the street developed various strategies to keep investor's out of this market. Stating, many of these companies were one trick ponies,no after life,post 2000,Gates has the silver bullet solution already,in Window's 98,99 etc,....which is not true, as we all know !!
They also,enlisted the help of our friends at Long Term Capital,who among other things,took huge short positions against the Y2K sector,in an obvious attempt to discourage the stampede there. They took short position's on gold too. Since,these guys crashed and burned,they did impact this sector,somewhat,but this was only short lived.
You see the problem the street has is basically,investor's are waking up to the mega problems that Y2K presents the direct impact it present's to you and me. You'll know when Y2K is over,when you get the bill,that's when. Unfortunately,some will pay more than other's which really does scare me!!
Now, the large brokerage houses are seeing the impact of Y2K on blue chip investments. They can no longer keep their dirty little secrets,tucked away. The SEC is using a sledge hammer to get companies to provide specific Y2K reporting, as you can see by their above Web. page.
These same firms are not compliant and have a legal responsibility to tell their investor's what's really going on or face class action lawsuits,like we have never seen before.
So as a risk adverse investor,what do you do? Do you stay invested in Fortune 10,000 companies with continued dwindling no growth quarter's,who are lying about their Y2K risk/liability/exposure etc..
because this set's them up as obvious shorts,or,do you invest in Y2K companies,with unlimited upside potential,who are solution provider's to these very same Fortune 10,000 companies,paying huge sums of money for their service. Probably, the best one out there now is Tava but I won't prattle on about it,you can due your own DD.
During the ensuing Y2K crises,investor's want to be close to their investments and asset's.They will only,invest in sure things,with little or no risk. Good y2K companies present that opportunity.
This sector will surpass the hype and height of Internut Mania,which too was driven by the ma & pa investor!!
Regards,
Dave
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