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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?


To: J Krnjeu who wrote (28208)8/4/1999 4:55:00 PM
From: Rascal  Read Replies (4) | Respond to of 41369
 
Why are internet stocks interest sensitive?

Theory is, that the internets use their own cash flow for growth, since no one would lend them money because their business model is different.

If this is true, one would think they have low debt.

If low debt.. then why are they interest rate sensitive?



To: J Krnjeu who wrote (28208)8/4/1999 10:56:00 PM
From: SpongeBrain  Respond to of 41369
 
SpongeBrain explains why your all gonna regret buying internets at these "bargain" prices:

How many times have we seen a stock do somethng like 400%, and then slowly give almost all of it back,
eg: Look at 1999 charts for SEVL, AHWY, WITC, KOOP, ,TRAC , HAUP , and countless others

I am now thinking that this entire internet stock madness of 1999 may follow that same pattern, but over a little long time frame..

Look at some of these 52 week lows !!!
AMTD 1.87
NITE 2.25
EGRP 2.50
DCLK 6.75
RNWK 7.62
NSOL 11
ATHM 11
*AOL 17
AMZN 21

Many people are thinking were so far below recent HIGHS, and these are bargains,
but should we be thinking the other way around?
(That we're still *WAY* up from lows, and most are still obscenely marketcapped, and there's still TONS of room to fall ?)
Dont confuse dead cat bounces for rallys.

I dont think its too late to open more shorts, and profit from furthur "carnage.com"
People are too scared to buy anything, and there are plenty of holders still to be shaken out.

(Preemptive y2k selling and higher interest rates won't help either ?)

Yes, not only am I bearish on internets, but AOL is just a laugh...But I won't argue w/ the people here anymore, as evidenced here, a classic sign of a bad trader, is to only filter in what he/she WANTS to hear, and ignore the rest, no matter how valid. So on that note, good luck cheerleading your AOL.

Let me know your thoughts.