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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: LLCoolG who wrote (3749)	11/28/1998 8:46:00 PM
From: Richard Tsang	Read Replies (1) \| Respond to of 4509

I think we can do both - analyzing the fundamentals of stocks that has a linkage to the craze. Learning from the BVSN experience, I am planning to look at the following companies with fundamentals I like: Open Text (OTESF) - Market leader in Knowledge Management (KM) tools for the intranet. High growth and making money. Ciber (CBR) - renewed interest from analysts, recent upgrades Electronic Boutique (ELBO) - Specialty store with great on-line sales growth. Thought they all can be "discovered" as cyberstocks. Do your analysis before investing, as always. RT

To: LLCoolG who wrote (3749)	11/29/1998 3:06:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 4509

LL, when you say Any Net stock has been much better than PSFT. this is what I'm talking about. The runup in the internet stock is not about earnings. Its about greater fools. Compare PSFT and AMZN for earnings. AMZN does not show a gross profit. Better yet, compare AMZN with BKS, and then look at how the two companies are valued. I chose BKS because it is in the same business as AMZN. What I'm trying to say is that an investor puts money into a company because he expects that company to generate significant cash flow from operations. A gambler puts money into an internet company because he figures somebody will pay more for it than he did. The difference is the investor is looking at earnings and cash flow as the motivator. The gambler is looking at other fools to take him out. Considering that PT Barnum made a living out of exploiting fools, there is no telling when the supply of the foolish will be exhausted -- or the depth of the supply of the greater fools for that matter. There are people who stand to lose a great deal of money by playing with these portal and fly by night companies. I think that the real internet money will be made by people who invest in either companies like ASND, CSCO, TLAB etc. (suppliers of the hardware) or companies like DELL who have demonstrated proficiency in using the internet to generate cash flow. TTFN, CTC