Good Afternoon Bill:
You may be right, there are just too many direct and indirect positives coming to bear that may reflect favorably upon our longer judgement and expectations for this issue.
What is really happening with all these Internet stocks taking off, is that they are playing catchup to where they soon will be - ie a significant player and powerful economic force, representing the major component of a substantial market share of the $10 Trillion US Economy or $26 Trillion World economy in the coming years ahead.
The Nasdaq hit new record highs Friday probably in reflection of its own growing share of the new 21st Century economy. Having already outperformed all other major sectors, including the old Automobile economy, it is now increasingly largest sector of the US economy and record exporter that continues to grow at an exponential rate.
Suddenly, the Internet and Intranet sectors are emerging as the leading edge of an even newer Information Technological economy that could eventually dwarf everything else in the current High Tech race, including its current leaders: The Intels and Microsofts of this World. Reason: The newly anticipated explosion in E-Commerce on a Global scale, already renders this whole new and emerging sector potentially and maybe even dramatically undervalued when viewed in the context of its future share of what will be an estimated $30 Trillion World Economy by the year 2000.
If sometime within the next 5 years, Internet commerce grows to say $3 Trillion annually, or 10% of World GDP as was recently projected, then by today's measurements Internet stocks are still a steal. This is what is driving the current buying stampede for anything remotely Internet related.
There are only so many Internet stocks, so the buying pressure created by the desire to have exposure to Internet and Intranet stocks in virtually every investment portfolio is driving stock prices to dizzying heights.
With that in mind, there are only a few quality issues that haven't yet taken off or had their run including our own Financial Intranet. In light of today's and many of the posts of recent days, its time may well be near. The smart money and momentum players who have made monumental profits in many of the recent high flyers, would have to nuts, not to be looking for any undervalued Internet issues to transfer some of those profits to. The real problem is: The Internet well is running dry.
You may also be interested to know that late last week, "Intranet" stocks suddenly took off and because of that, Financial Intranet could therefore be potentially undervalued on several counts based on the rapidly increasing valuations of both sectors, as well as what looks to be a strong background of improving fundamentals and solid base from which they can expand into any number of fast growing areas, such as they appear already appear to be succeeding at in the somewhat overlooked explosion in Intranets, as well as E-commerce.
If the well is running dry for Internet stocks, there are so few Intranet stocks to the found in the Intranet well...you could almost count them on one hand, that Financial Intranet has to be a standout there too.
Imagine the impact of a wall of money pouring into the well and finding only handful of these issues? The first trickle happened last week, with an estimated $35 million going into Open Market (OMKT) over just two days, Wednesday and Friday. Curiously, the structure and profile of OMKT strongly resembles that of FNTN, to the point of being almost identical.
If it wasn't for the fact that OMKT was quoted in Dollars at roughly 10 to 1 of FNTN being quoted in cents, one could almost confuse the two companies by their similarities. See my previous post of Friday morning alluding to a triple or quadruple series of 1 - 2 waves, followed by the possibility of a third wave breakout. Looks to me like the 3rd wave breakout came in right on cue for OMKT. Can FNTN's 3rd wave be far behind.
On the more promising side for FNTN, the increasing volume profile for Financial Intranet, (remember rising volume invariably precedes a price breakout), actually may portend a more dramatic price move for FNTN, than what has actually so far occured in OMKT. Since OMKT closed at Friday at $20 3/4, it could be argued that given the similarities of price behavor, (ie. dollars vs cents), this might equate to an initial move to $2 for FNTN, seeing as coming from a similar sector, FNTN could conceivably be undervalued relative to OMKT. It would not surprise, therefore, if both stocks were to hit new highs in the not too distant future based on their dynamic technical structures. Their turn may too be at hand.
Compared to most of these companies that have risen on great expectations, FNTN in contrast seems to have a lot more going for them than most and is therefore a lot more diversified in that respect. These added benefits combined with a seasoned and hopefully agile management, supported by an experienced and creative board of directors, ought to ensure that FNTN can direct its energies towards areas with the greatest growth potential, on short notice, which from all accounts they appear to be focused on already.
With Robert's post this afternoon, there are compelling enough reasons to buy Financial Intranet for the long term which is what brought us all here in the first place. We may have just figured it out ahead of time. How long will it take the rest of the market to reach the same conclusions and thereby accelerate the growth cycle?
There are only so many shares of Financial Intranet available. On a very slow post-Thanksgiving Friday, about one billion dollars changed hands in Books a Million, (BAMM) and about $210 Million went into Navarre Corp (NAVR).
If a fraction of this kind of money finds its way into Financial Intranet, it will no doubt have a profound impact for all those investors who have been patient enough to sit this one out through bad times and good.
Have a great week
Rgds
Wiz |
