Jon,
If I might step in here (might be a mistake on my part, though), and say that I agree that Internet stocks are very overvalued to current performance, GNET included. We're in a current "tulip mania" with regard to the internets and traditional valuation models are being thrown out the window.
That being said, since people don't mind the mania, and they are willing to pay for market capitalizations that may take to a several years to justify, it is justifiable to say that GNET deserves its fair share of publicity as a net portal that is actually profitable with a ton of cash to work with. For those two reasons alone, it stands heads and shoulders above the rest in earnings confidence (which then leads to investor and institutional confidence that they won't be blind-sided by negative earnings reports).
Personally, one of these days short selling internet stocks will "net" (pardon the pun) some speculators a ton of money. When US consumer confidence dries up, internet stocks will see the mother of all cash outflows as it becomes evident that even direct sellers will suffer earnings disappointments.
But that moment isn't now, and while the internet craze remains intact, GNET stock certainly deserves higher valuations than it currently enjoys relative to its competitors.
And that's how I see the situation.
Regards,
Ron |
