. My Internet Strategy through the next earnings cycle..AOL,INKT,NTBK (or NITE),VRSN,EBAY,YHOO, ATHM
I have been in MSPG, ELNK seriously since January 1998- March 1998 and then again in June 1998,
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and not so seriously 'dabbled' in Oct-Nov 1997.
Message 3269547
After these two I introduced the thread to NSOL, from which I endured a lot of 'abuse' because it was 'overvalued' at $20 a share. I maintained bullishness in NSOL throughout..
Then came Market Gems around April 1998, and with it came a whole slew of new internets which I uncovered from their contact with Market Gems: There was VRSN which I latched onto strongly know of their monopolist niche in security. By this time you probably all remember the evolution through VRIO, again which was introduced to the thread around July of 1998. By this time everyone was convinced these stocks were the 'future'..
Then came my favorite and most lucrative and enduring position of all NTBK, in January of 1998. I've held a position in that company more or less from March of 1998.. when it was still a 'teenager'... of course much stronger position in the last 3 months.
The rest is history and even you newbies know. I've held them all from stints of 3 months (january 1998-March 1998, MSPG and ELNK), from September 1998, through much of the winter. VRSN the positions were for shorter intervals about 1 month or so. VRIO again for over 3 months. I had a wonderful stint with NTBK,lasting 4-8 months.
When I am convinced the nets have bottomed: in around 2 weeks when I return from vacation (8-14) I will begin accumulating my favorites once again. The 20-25 other nets that I research intensely will be held only for periods of 1 week until the trend abates.
Why all this? because now everyone is an internet analyst from the boy who cleans the pool to my Dentist, Aeorbics Instructor...to our friend the professional gambler 'retired' to Florida from Las Vegas just recently (hes the funniest) whos' never owned a share of stock before he turned 60, but you have to see the way Lou plays NITE, up and down for 10 points like the pro that he is.
That is why I am not holding any internets. My strategy is never again to hold positions long term through thick and thin. My positions will be accumulated about 2-3 weeks before earnings season (season lasting about 1 month say) through the end of the season which is a total of no more than 7 to 8 weeks a stint. All positions to be closed the day after the last net reports. (which is how I saved myself this quarter from the correction)
Because of the influx of electronic traders into the internet sector, the volatility and corrections are steep. Anyone who stays through all them is a fool and he will be soon parted from his money. Most of the stocks above will be my 'core holdings' and will also include some 10-20 day holds of stocks like INSP, EXDS, VERT, COVD, VRIO etc. What I accomplished in this sector in 1997-1999 sector can't be repeated with any buy and hold strategy.
A lot of you are rushing into the nets too quickly, there will be time. You will be richly rewarded if you wait for the 'bottom' to come than sail the stock through the month of July until the very last one reports. Then sell off the the bunch, or risk a 30-50% correction. |
