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Technology Stocks : Internet Guru Discussion -- Ignore unavailable to you. Want to Upgrade?

To: steve harmon - analyst who wrote (2390)	8/10/1999 2:35:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 4337

Steve: What's your current view on EELN and its prospects? I realize interest rates have inched up and its in a field that seems to be quite sensitive to rates. Yet, E-Loan has sold off from its high in the mid 70s down to the mid 20s. The company has the first mover advantage, strategic alliances with smart players (like Yahoo and Softbank), a great brand and marketing campaign, a scalable business model & an effort underway to diversify its revenue streams. Any comments would be welcome. Best Regards, Scott

To: steve harmon - analyst who wrote (2390)	8/10/1999 10:51:00 AM
From: Enam Luf	Respond to of 4337

<<the selloff was triggered by capital re-allocation across a wider universe of internet stocks more than anything else>> Looks like it's not over yet, steve. Two fundamental pieces you are missing to this puzzle are interest rates (especially in net stocks where 90% or more of the equity value can be locked up in rate sensitive terminal values), and market psychology. People are just now beginning to realize that we have passed the midpoint of the S curve and growth is now beginning to decelerate. Mind you, this is not to say that internet firms will not continue to grow at a relatively quick pace, but that that pace is no longer accelerating. The inflection point is significant in that a net investor can no longer close his/her eyes and extrapolate 150% annual growth out over the next 10 years and then exclaim "hey!.. EBAY (or insert your pet net stock here) is undervalued!" the fundamentals are comin' home to roost my friends... hold on to your wallets.. I would stay far away from any retail/middleman company (ebay, amzn, pcln etc) as i feel that the general public is now beginning to understand that typcially, these firms operate on miniscule margins and are thus penalized by the market (institutions) on a p/s and p/e basis. still bullish on some of the tech and access providers, however, along with e-business services companies. -enam