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Technology Stocks : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?

To: Richard B. Haenisch who wrote (531)	11/25/1998 2:07:00 AM
From: Richard B. Haenisch	Respond to of 1634

CHECK THIS OUT: I just realized that William Blair & Co. is the co underwriter of this IPO along with Merrill Lynch - COULD IT BE THAT THEY ARE DELIBERATELY TRYING TO KEEP THE STOCK PRICE DOWN? Mmmmh, I would think that a co-underwriter would want the stock to go up, so the IPO of UBID would be "valued even higher", wouldn't you? If anyone out there has a any idea WHY William Blair & Co. would hold MALL down, I AM ALL EARS! RICO

To: Richard B. Haenisch who wrote (531)	11/25/1998 2:18:00 AM
From: Clarksterh	Read Replies (2) \| Respond to of 1634

CNBC constantly reminds the viewers how overvalued these stocks are First, it isn't clear that MALL is overvalued even by conventional measures. In only another 3 quarters they will have revenues which justify their current price (P/S = 1) even if you assume a considerable slow down in quarterly sequential growth. A lot of conventional companies are judged by looking one year out ('the forward P/E is ...') so this is not all that 'exuberant'. (Yahoo is probably the most optimistically valued - it will be more than 11 quarters before they can justify their cap even if their growth slows not at all. That is definitely speculative - when was the last time you heard a fundamentalist talking about the P/E 3 years out.) Second, tulipmania is not a good thing - think 1929 or the Nikkei (sp?) in 1990. Because of the intertwining of margins, collateral, ... the crash of speculative buying can actually have macro-economic effects (although much less than it used to be) so it isn't unreasonable to 'talk it down'. At the rates these companies are growing you'll still do well even if you do have to wait 1 or 2 years. Clark