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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (2868)	5/20/2000 3:27:00 PM
From: Mad2	Read Replies (1) \| Respond to of 3543

Dale, there is no doubt that the internet and associated businesses that thrive on its existance/growth will be around for awhile (eg, telephone, radio etc....all have been discussed before). What is going on is carnage amongst those who need cash to keep going. For the past year any company spinning off a high growth prospect was greeted with a welcome runup of their shares (COMS, DBCC, UIHIA now UCOMA, and so forth), well times are a changin as demonstrated Friday with UPCOY (the son of UIHIA/UCOMA, whose attempt to have a grandson thru the spin of Chello broadband). Seems the gig is up.......IPO pipeline is getting choked, prices are softening and expectations falling. Given that the internet sector lives off of capital (as earnings are non-existant) it appears the free money days are comming to a screeching halt. Lets not be foolish in the assumption that this will only affect those will weak balance sheets, where does EXDS, CSCO, YHOO, SCNT, PSIX, XPDR and others get their money from. A good portion comes from those having to layout $$$ to build infrastructure, brands and so forth, who are going to have a more difficult time raising cash. quote.yahoo.com In the long haul this will actually be good, however near term the problems of the weak will effect the strong. Besides the valuation (eg high) issue still exists. Best Regards, Mad2 BTW I hope you don't wait untill this sector sees zero growth as most issues are fully valued at growth rtes of 30-50% There are sectors and companies where one can make money this year.......but its not going to be on the winners of the past 5 years;?)