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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Steve Misic who wrote (5733)	7/5/1998 2:22:00 PM
From: Kirk ©	Read Replies (2) \| Respond to of 42834

Has anyone asked Bob on the show if he is worried about the lunacy in the Internet stocks sparking a major sell-off. ? He sure made fun of the nuts paying way beyond any reasonable valuations for yahoo and amazon.com (to name two). He cited the market cap of Amazon.com to be equal to that of the two largest book sellers with stores(hard assets). In a way, I think Bob might have given an explaination to why amazon.com is valued at $9B....Many think it can exceed the sales of Barnes n Nobel and (I forget the other large store) and not need nearly as many assets to do so thus its EVA and ROA could eclipse their competition. I've even got a small "bookstore" of my own here pw2.netcom.com where I have Bob's recommended Reading List along with other books I like. This "store" didn't cost amazon.com a dime other than the small commission (5% from a click through or %15 of any book I recommend) they give me for having the bookstore on my webpage. They didn't invest any additional capital to get my orders and yet they get increased sales. I actually purchased a father's Day gift from the site rather than drive to the store to buy a shirt so I bought an extra book that I wasn't planning to buy. With all that said, I do not own Amazon.com and think it is too richly valued for my taste though I sure like their business plan. regards Kirk out