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To: Glenn D. Rudolph who wrote (85884)	12/1/1999 6:01:00 PM
From: cellhigh	Read Replies (1) \| Respond to of 164685

well golly aol is already down 10+%,ebay10+% amzn10+.i think they will just follow the nasd which has got to be going down ..right? why the heck aint it going down anyways? i wish amzn(site) wasnt down !that sort of sucks/back up got my wish..thats good

To: Glenn D. Rudolph who wrote (85884)	12/1/1999 6:25:00 PM
From: Mr. Tomatohead	Respond to of 164685

Here is the entire piece by Harmon, for those, like me, who are too lazy click around a little bit---Doesn't seem to indicate why blue chip nets will be hit, or at least doesn't seem to provide rationale. Many are down 10-15% from runups. Not saying it won't happen, but the rationale on being due for a correction in stocks like AKAM, DSL-sector, and b2b flyers as including more established ones isn't in his piece. I've done well with his analysis over the last year and a half, but I'm not sure that his article was intended at the entire internet sector (CSCO, EMC ? SUNW, AOL, YHOO). Perhaps some of the stocks already have had his correction, as I said before...Also seems likely that money taken off the table on newer issues may go into AMZN, YHOO, AOL, CSCO, EMC types. Overall he is positive on the longer outlook on whole net sector. Wednesday, December 01, 1999 Correction coming? A couple of things seem to be aligning to perhaps trigger a 10-25 percent pullback in the Internet stock sector before year-end. We issued a similar warning this past March just before the April pullback. Surprising coming from long-term investors (we don't short). Why could a correction happen? 1) Huge run-ups sector-wide, an "all ships rising with the tide" move that has indiscriminately raised expectations too high we believe. Ships should rise, but not life rafts. Example: Yes, I am a believer in Akamai (AKAM) the company but not AKAM the instant gorilla (market cap seems way ahead of itself). Ditto for DSL stocks and B2B stocks of all flavors. The market was there in April and it appears could be there again. Then, as now, we issued a warning beforehand. 2) The piling of attention-deficit-disorder caffeine cowboys into thin floats, looking for a quick return, squeezing themselves. This is the modern equivalent of a throng of hippies piling their way into a 1967 VW Bug after too much Hendrix. 3) Economic growth outpacing Alan Greenspan's abacus (it only counts so high). 4) Chicken Little and the Y2K chicken soup for the soul being served up and the fear that a Y2K event could trigger a tech-stock backlash. 5) Too many weak IPOs diluting the Internet. 6) The hype coming from more than a few companies regarding what they represent makes Zapata look like its fax-it-in bid for Excite last year was conservative. On the plus side, ponder that we believe this short-term correction (if it occurs) doesn't represent the underlying value of the Internet. The intrinsic value grows as a primary driver of value and not a result of a window on Wall Street. The fundamental value of the Internet for long-term investors such as ourselves comes from a new observation: the Internet as utility and everything that implies. Utility in commerce, content, communications. Corrections will come and go; utility builds on itself.