To: Oeconomicus who wrote (8236 ) 3/11/1998 10:02:00 AM From: RDH Respond to of 27307
Yes, R.D., the small guy gets burned if he follows the analyst's recommendations. SUNW (Sun), ORCL(Oracle), INTC(Intel) go down. Analysts say sell. Little guy gets out puts his money in YHOO or SEEK or AOL or some other internet stock. SUNW bounces back up ; so does ORCL, INTC, MSFT and the others. The internet stocks fall. But someone has made a ton of money. Are the analysts just always wrong. Or are they manipulating the market? I think it was obvious that SUNW was a bargain at 37. Analysts aren't that dumb. I think it is obvious that YHOO is overvalued. It is selling at too much of a premium for even a very promising growth stock. Do you get a magazine in your mail like "THE PENNY SAVER" or the "MONEY SAVER" or some other throwaway magazine that advertises. People actually look at these magazines; actually look at their advertisements. Do you watch TV. Do you notice that when you watch it your attention is focused on the program. Then an ad comes on. It takes up the whole TV screen. The only way to ignore it is to look away from the screen -- get out of the room, start a conversation with someone. But usually you watch a significant percentage of the ads. Especially if you are by yourself. Do you ever go to a search engine. How often do you get distracted by the ads. They don't take up the entire screen. They don't have any sound. They can be so easily ignored. You get used to the format of YHOO and just don't look at the areas where the ads are. They start to become invisible. YHOO may display the ads first. And maybe that is why it takes so long to load YHOO nowadays, because the want you to start at the ads. But YHOO is in a dilemna -- if they load their pages too slowly, people will use another search enginge. For about a two week period, WEBTV started having ads between the time you requested to go to another site and the actual connection. They would display a ad at this point. It was pretty noticeable. But also annoying -- WEBTV stopped this very soon after they started this -- I think it lasted less than two weeks. But it was certainly more effective than the banners you normally see on the search engine sites. Although people should know better than to invest in YHOO at these prices; I can sympathize with those that lose money -- because its hard to ignore the analysts -- they are supposed to be "experts". But I suspect that although some of them are honest and just inept, some of them are dishonest and know how to manipulate the market. Just my opinion. - RDH.