IMHO, i think that the huge valuations afforded these net stocks such as AMZN and YHOO were achieved in large part to short sellers and scarcity of stock, in tandem with unprecedented hype and promotion. The mania is fading with the stock price. Stock is no longer scarce. Large holders of stock would be crazy to wait until these companies grow into their valuations to sell their holdings. What would be the point? They can no more predict the future than anyone else. It seems the only challenge is to sell as much as possible without startling the herd. "They can sell much more on the way down than the way up."
If I was building a house, albeit hopefully a very grand house, and a buyer offered me absolute top buck as if it were totally finished, even though it is just a framework, I'm sure I would say "Oh, no thanks, I prefer to pour money into it and work like a dog, until one day hopefully, it will be finished. Then I will sell it to you.
NOT!!
Quarter by quarter, a record of earnings(or lack thereof) is made, and there is much less mystery, and much more history. |
