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 : INFOSEEK (GO) -- Ignore unavailable to you. Want to Upgrade?

To: Winston Kim who wrote (3591)	4/14/1998 2:33:00 PM
From: Jonathan Brown	Respond to of 9343

Briefing.com, 13:45 ET THE SEARCH-ENGINES: A new wave of momentum-player has entered this market: the institutional buyer. Over the past two days, huge blocks of Internet search-engine stock have been pulled in by and through major investment community names such as Merrill Lynch (which was doing considerable buying yesterday ahead of the firm initiating coverage of a host of Internet stocks this morning), CS First Boston, Goldman Sachs, BT Alex. Brown, and BA Robertson Stephens. Could we be interpreting this correctly: all of sudden, Internet stocks are seen as respectable? By some, yes. By others, the decision to buy these stocks makes sense, even though valuations may be severely stretched 1) these companies, particularly the search-engines, have very little exposure to Asia; 2) PCs keep getting cheaper; 3) b/c many of these companies don't make money, the parameters for measuring valuation are less restrictive 4) few other places to go-- the drugs, airlines, autos, and retailers have already run-up substantially. Probably the most important of the reasons that a rotation into Internet stocks is occurring is that there simply isn't any bad news to hold these stocks back (valuation doesn't count). Until the overall market cracks or the group somehow shoots itself in the foot, the smart money is going to stay in Internet stocks. Institutions would rather be in more-established groups like chip-equipment makers, box-makers, semis. However, every time they attempt to build a position in these groups, industry leaders like Motorola or Kulicke and Soffa hit them over the head with more bad news. And, one thing that the institutions learned from the move in the oil drilling/services stocks is that even those who were late to the trough were able to get a drink before the thing collapsed. So it should not come as a major surprise that with Yahoo! up 65% for the year, Excite up 155%, and Lycos up 72%, institutions are finally beginning to make their move into this group. How about this for the ultimate hedge: Merrill Lynch initiates coverage of Yahoo!, InfoSeek, and Excite with near-term ratings of "neutral" and long-term ratings of "buy." The only stock the firm is willing to take a chance on over the near-term is Lycos, which was started at near-term "attractive," long-term "buy."

To: Winston Kim who wrote (3591)	4/14/1998 2:34:00 PM
From: Robert Pope	Respond to of 9343

Poor Spike... Patience shall be rewarded. Zippetty do dah! Where the hell is cm?! Tell us you didn't sell! That Ultraseek server sounds like it could be a widely used product. Quotes from the technology consultant to the US Dept. of Education as well as clients such as Sun, 3Com and Sony.... The Little Engine That Could!