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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: dbblg who wrote (80153)	10/11/1999 3:04:00 AM
From: Eric Wells	Read Replies (1) \| Respond to of 164684

>>I think different constituencies have different >>reasons for owning stocks, Ganesh - I think constituencies own stocks because they think such stocks will offer a positive return that is greater than other investments that bear the same risk. However, I think such constituencies have erred in the evaluation of risk in many stocks of late - and they assume that past increases in stock value correlate positively with future increases in stock value (a TA trendline with an ever positive slope, if you will). And such thinking has gotten investors away from fundamentals. You could argue that any type of investment is a gamble. But when the only explanation for a meteoric stock price rise (such as what we have seen recently with AMZN and YHOO) is the a very optimistic expectation of future revenues and profits, then I view investment in such stocks as gambling. We buy these stocks with the 'hope' that they will continue to go up - in the same manner that a gambler at the craps table hopes the dice will add up to seven (on the first roll). -Eric