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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Lola who wrote (38426)	6/10/1999 8:43:00 PM
From: BRANDYBGOOD	Read Replies (1) \| Respond to of 122087

Lola, I think it's called the Domino effect. Individual investors fell in love with these "wave of the future" low float stocks. This caused phenomenal price increases in these stocks as the money inflow increased. Valuations were totally ignored as Joe Blow got very rich by buying these issues. It began with AOL YHOO CMGI etc., all first tier in the sector. Then began to spread to second and third tiers. In the mean time the institutions began to buy in hoping to increase those end of year percentage profit figures so near and dear to their hearts. They, of course bought 1st tier in the sector. Many are still in. (still ignoring traditional valuations) Now however, the sector is so diluted by the rash of net IPO's, the glitter is fading. "Can people really be that crazy and send these new companies' share prices to the moon just because it's the Internet?" Hell yes. They have, we've seen it many times over. I think the end is drawing near though. As Anthony says, the sector is way overbought even at these levels. (which still have ridiculous p/e's) JMO, B

To: Lola who wrote (38426)	6/10/1999 8:48:00 PM
From: rogermci®	Read Replies (3) \| Respond to of 122087

You're asking me? I'll only respond by saying there are those who don't know and those who don't know that they don't know the answer to those questions. Put me in the former category. roger

To: Lola who wrote (38426)	6/10/1999 9:02:00 PM
From: If only I'd held	Respond to of 122087

<<It's like people are addicted to Internet stocks and the majority don't even have Internet access yet from their homes.>> That is something to ponder right there. <<It's crazy these stock prices in the big Inets. AOL will never ever be able to justify their capitalization. >> Maybe some of them will. But not today. The way stocks are valued overall has gotten out of line, but that is basically due to the influx of money in my opinion. This will stop when the money stops coming in and reverses to where it is being pulled out long term. (1 year minimum, more like 3-5) I see it happening with Y2k fear, and it will be slow to recover, not only because the market will be very cautious from the drop, but we should be entering into a recessionary period, at which time, people will not have so much free cash laying around to play with. There are a lot of small players in this market right now. But it really adds up. Those small players won't have the ability to stay in the game during a recession. And we are due. Things have a way of compounding. We are on this trend right now. It is not quite time to panic yet, I don't think, but the warning signs are starting to pop up. And if you are long, you don't want to be caught in that panic. As long as the market beleives that a stock is a deal, it will go up. Perfect example is EYESE. I am comparing it to companies by using X-revenue valuations. BEAM, VISX, ISEE, they are crazy right now. But as long as that's how the market is valueing them, then EYESE in my eyes looks cheap.(How do you like that pun?) But is it?? That is for the market to decide. And you and I are the market. The internet is big. Real big. And there are going to be some really big winners. That is why some of them have already been to the moon. The only question you should really concern yourself with, is which ones will get a return trip after they have arrived back to earth for fuel and maintenance. They are still in orbit right now, or.... whatever. Just my thoughts.