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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: re3 who wrote (2462)	11/7/1998 12:51:00 AM
From: zax	Respond to of 3203

Well, another day, another 2,432,900 shares of KTEL trade hands. AMZN volume was a little heavier today, at 3,043,800 shares. It looks like Jeffrey Bezos, the owner of Amazon.com, is beginning to cash out (for the first time... generally not a good sign for an internet startup that is burning cash reserves fast), along with others who are realizing that Amazon.com only loses more money every quarter than the previous. The AMZN bubble had to burst sooner or later, and the stock now appears to have lost all its momentum and upside and is beginning to drift very slowly downward. The only people who have been making real money on AMZN as of recent are those who have been writing on the money puts or calls... and there is increasing risk in this strategy now. I speculate that AMZN longs will become divided into four groups now, one group will continue to play the upside and start losing money. Another group will change and play the downside and may make a small amount of money... but downside profits generally are not nearly as large as upside profits. A third group of the AMZN longs will recognize that KTEL represents a nearly identical opportunity in comparison to the behavior that AMZN exhibited starting one year ago: it is a well known stock and company, lots of short interest. That magic 'je ne sais pas'. Thus KTEL can now be reasonably compared to Amazon.com as of one year ago (in its infancy) and at very similar price and daily volume. I cannot stress enough that the KTEL bear argument lacks the profitlessness that the AMZN bear argument held. Comparing the multibillion dollar capitalization of AMZN to the double digit million capitalization of KTEL, should be a clear indicator to those who have made so much money going long on AMZN that the very same principles now apply towards KTEL. Good luck to all, -- Eric

To: re3 who wrote (2462)	11/7/1998 1:00:00 AM
From: Lionel Parker Perkins III	Read Replies (1) \| Respond to of 3203

I just don't like companies that release news like this and let the stock run up, yet they fail to tell you when the president has resigned. I have shorted several stocks in the last year as you will see in my post. Never any of the major players that seem to be above board about there business and serve some real purpose that deals with the running of (MSPG, AOL, YHOO) or doing big volume commerce (Ebay, AMZN,GCTY) on the net. To much uncertain future on the positive side for these stocks. As for your question about being short and wanting the rest of the world to do the same, yes I would like to see people pile on top of some of these stocks. Maybe then some of these companies would then learn to temper some of their press releases. I am sure some day I will get burned doing this, so far I am 5 for 5, but I make mistakes too. Went long with CS last year and watched it drop 15 points on me. Should have shorted that one as well. As a stock broker I feel for people that see stuff like this on CNBC and buy the stock thinking it's an investment and then lose most of there $$$. Sorry I have been so harsh on this stock, it's been a long week.