To: J.T. who wrote (1051 ) 10/22/1999 5:50:00 PM From: pater tenebrarum Read Replies (1) | Respond to
J.T., note that the nutz were crumbling all day, well before the CSCO rumor(which is probably false anyway) hit. there are some doubts out there all of a sudden w/regards to the web's growth rates. i aired some fundamental criticisms about most pure net plays' business models before, which basically centered on the problem to achieve useful margins in the e-commerce space and the flaws inherent in the reliance on advertising by other nutz co's in the face of plunging click through rates and ad prices. i suspect that all these concerns will come to the fore again in coming weeks, as the loss reports of the various nutz come in. as for CSCO, it is no wonder that such a rumor should surface...they probably won't miss this quarter, but will likely have some words of caution regarding the immediate future. the Y2K lockdown which has bitten IBM is bound to bite other tech heavyweights as well. since the absurd (Ballmer's words, not mine) valuation of the NAZ (current p/e 158) is based on the perception of growth until the hereafter, even a slight setback will result in a rout.
