Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: David Cecil who wrote (2290)	6/28/2000 1:59:00 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 3664

Internet Bubble' Author Bullish on Tech: Bloomberg Forum New York, June 28 (Bloomberg) -- Anthony B. Perkins, who warned seven months ago in his book ``The Internet Bubble'' that Internet stocks were overpriced, said the stunning decline in technology stocks has created investment opportunities. ``The Internet sector was valued at $1.5 trillion, based on only $29 billion in revenue and $3 billion in profits,'' said Perkins, chief executive of Red Herring Communications. ``We've seen that mountain of market capital melt down in half. Now it's back to reality.'' Perkins's book, published by HarperBusiness, has sold more than 65,000 copies. Because of his gloomy predictions, he ``wasn't a very fashionable person for many months'' until proven right when Internet stocks plunged in March. The Bloomberg U.S. Internet Index of 397 stocks is now about 45 percent below its March 9 peak. Because ``we're only in year six of a 30-year tech boom,'' investors need to ``look through the wreckage and identify some cool companies'' that will survive, Perkins told the Bloomberg Forum. His picks include Exodus Communications Corp., one of the biggest operators of Internet sites; Yahoo! Inc., the most popular search engine; Inktomi Corp., another big search engine; RealNetworks Inc., developer of the most popular Internet media player, and EBay Inc., the top online auctioneer. ``These are great companies that are going to be highly profitable in the future,'' Perkins said, even if some, like Exodus, aren't profitable yet. ``The Internet is about the global build-out of a network we can all benefit from,'' Perkins said. ``Companies like Exodus are like arms dealers'' in the battle to build the World Wide Web. Perkins, 42, worked for Silicon Valley Bank before starting Upside magazine in 1989 and co-founding San Francisco-based Red Herring, which publishes a magazine and runs a business-news Web site, in 1993. The washout in Internet stocks slowed Wall Street's love affair with initial public offerings of profitless companies and taught inexperienced venture capitalists that ``they can't always expect a 300 percent profit on their portfolios,'' he said. Venture capitalists, he said, are probably betting right on companies like Onvia.com Inc. and Andale Inc., which use the Internet to provide electronic commerce to small business. Jun/28/2000 12:49 ET