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Technology Stocks : Dell Technologies Inc.
DELL 133.92-4.9%3:59 PM EST

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To: edamo who wrote (115279)4/8/1999 4:28:00 PM
From: stockman_scott  Read Replies (2) of 176387
 
FYI...Some Interesting Comments on Internet Valuations...

<<Dow Jones Newswires -- April 8, 1999
Internet Fund Manager: Web Cos. Defy Old Valuation Models

NEW YORK (Dow Jones)--Investors should scrap traditional valuation models, such as price-earnings ratios, when evaluating volatile Internet stocks, according to Alex Cheung, manager of the Monument Internet Fund.

"You have to look at the Internet sector as a brand new industry with mostly development-stage companies," Cheung told CNBC in an interview Thursday. "You have to look at it differently from the way you look at a company like AT&T."

Investors should focus on an Internet company's potential market size and its ability to retain customers, rather than its P/E ratio or revenue growth, he said.

A successful Internet company has a "business model with a clear path to profitability, key people who are happy to work there and the necessary financial muscle - money in the bank," Cheung said. >>
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