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Technology Stocks : K-Tel (KTEL) Have the cheesy '70s records come to an end? -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (528)	4/21/1998 12:36:00 PM
From: Van Nguyen	Read Replies (2) \| Respond to of 3203

Yahoo, AOL are losing steam. Even LCOS, SEEK, and XCIT. The bubble will burst sooner than you thought. Look at an extract from Briefing: Stock Brief -------------------------------------------------------------------------------- Updated 21-Apr-98 Little MARG Lest there be any question that the current Internet stock craze is irrational, witness MARG. That's the ticker symbol for Market Guide, a company that provides fundamental stock/company information to services like ours (it's in our Company Reports section). Yesterday, MARG re-announced that it had signed a deal with AOL to provide its information in AOL's Personal Finance section. Good timing. Market Guide had in fact issued this press release once before -- September 3, 1997. There were a few small changes; the AOL site is now described as "newly redesigned" and MARG is now including its stock screening tool in the deal (the stock screen hadn't been unveiled last September), but this was essentially a press re-release. It didn't have any impact back in September, but yesterday it was worth a 165% gain on volume of 1.4 mln, versus average volume of 5,600. The Internet gold rush already was looking like a certain Dutch tulip craze when K-Tel (KTEL) doubled, tripled, sextupled, ???, its value by announcing plans for an Internet site, but MARG was the nail in the coffin. When seven month old news can more than double the price of a stock, you know you've reach la-la land. What does this mean? Not that any of these Internet wunderkinds will necessarily be knocked down tomorrow, but that this is a bubble and it will pop, perhaps in ugly fashion. Caution, to put it mildly, is advised.