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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (412)	1/10/1998 2:17:00 PM
From: Eric Klein	Respond to of 18691

Alan Abelson had something to say about YHOO. I doubt this will convince the faithful who believe that YHOO can only go up, but every little bit helps. Barrons - Up & Down Wall Street interactive.wsj.com David Simons is the boss man at Digital Video Investments, a money mgmt operation that specializes in, among other such things, Internet companies. He notes that the latter have been enjoying a recent whirl on the notion that they have no Asian exposure. Well, David says, it aint necessarily so. Many of the advertisers online, he observes, which represent the primary source of profits for companies like Yahoo!, most evidently do have Asian exposure. Of the top sever product categories of holiday season online buying, four -- apparel, food, electronics and toys -- are especially vulnernable. Makers and purveyors of this stuff either face competition from suddenly cheaper imports or must cope with shrinking export markets. Moreover, as David points out, the negative vibes radiating out from Asia and reverberating in our economy are bound to exert an effect on the Internet contingent and, more specifically, on the companies rate of growth. "Being online", he remarks is highly discretionary for the 80% of households that aren't,as well as for most of those that are. Anyway, he chuckles, "buying a stock because it might not contract a particular malady is like saying that Twinkies are healthy because they can't carry chicken flu." And his form conviction is that, regardless of the absurd valuations Wall Street has conferred on them, many of today's sizzling Internet favorites are tomorrow's "cyber-cyclicals".