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

To: Rob who wrote (4242)	4/18/1998 3:54:00 PM
From: Ken Wesley	Respond to of 9343

Rob, Thanks for your interesting industry comparisons. Last Wednesday or Thursday on CNBC, there was a discussion about internet stocks and the quick rise of their stock prices. A comment was made about the fact that Yahoo had a PE of 1200 and why would anyone be buying what appears to be overpiced stocks. IMHO many of the stock anylists don't see the real picture and are still looking at the fundamentals and shaking their heads in disbelief. Many of the brokerages are just now beginning coverages of Infoseek, Lycos and Excite. Where have they been as these stocks have been appreciating for some time. (It must be: no earnings, no coverage). Why pay big commissions to these guys when you can go to electronic trading for a song. These guys are coming to the party late as usual. Zach's shows the following coverage: Yahoo covered by 12 brokerages, Excite by 7, Lycos by 6 and Infoseek by only 3 brokerages. I believe the financial community is discounting the internet stocks by 2-3 years because of the tremendous potential of some of these companies. Yahoo's earnings out 2 years from now may make today's stock price look like a great bargin. Give some of these companies time for their earnings to catch up to their stock price and we may still be looking at bargins at today's prices. As these quarterly repoerts come out, let's take a close look at the revenue growth. Yahoo reported 1st-quarter revenue of $30,000,000 compared to last year's 1st-quarter revenue of $10,000,000. Excite had revenues of $23,000,000 compared to $7,300,000. This shows that 1st-quarter revenue of these two companies almost tripled from a year ago. My guess is that the increased revenues of the future will far outstrip the expenses they will incur. The huge startup expenses are behind them and now it will be a matter of improving their product and gaining more viewers. I ran across this article by James Cramer and thought you might be interested: fnews.yahoo.com P.S. What do you think of the Infoseek management? Are they winners? Ken W