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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (29759)	12/13/1998 2:29:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 164684

This is anecdotal - the results of my unscientific survey of brokers and investment advisors uniformly shows that a large percentage of long-term holders of Amazon and other Internet stocks plan to sell 1/2 t0 2/3 of their holdings after the stock splits in January. One investment advisor I spoke with was typical: " . . . one client bought Amazon when it was around $40 and sold off 1/2 at $130. He now considers his holdings 'free money' and plans to sell off 1/2 of the remaining shares after January 4th. He also owns Yahoo! and some other Internet stocks that he plans to sell part of during the typically strong (for tech stocks) 1st quarter." Reports of strong Christmas season sales can be expected to help lift the Internet e-tailers but at what point will that have become fully factored into the market for these stocks? Massive insider selling, stocks splits, and a flurry of IPOs will ease the supply v. demand by this spring, IMO. I think we will see a pull back after seeing new highs in the sector. I don't think we will see a large run up like we had a few weeks ago - but the extent of shorting in these stocks could cause a swift jump up around expiration times. If the sector does rise sharply and another round of totally Bizarro world buying and short covering frenzy steps in, that will be a time to sell. IMO, sell short only when the sector and individual stocks reach wild and crazy extremes and cover on brief pull-backs. Buy only when you can get in on the IPO or shortly afterwards as a momentum play or when the sector sees a significant short-term correction. The problem with the above is that it is an attempt once again to use logic about these stocks - something that has proven to be less usefull than just joining the masses who have swarmed into the market picking up practically anything with .com at the end of their name.

To: Glenn D. Rudolph who wrote (29759)	12/13/1998 4:01:00 PM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Glenn, lets be honest. You and I were crushed because we came from the old school of fundamentals. Looking back. Can you ever recall a William, TomD or Mark Fowler post that ever raised concerns of the lack of Fundamentals? From LA times. Today, veteran Wall Streeters like David Dreman of Dreman Value Management in New York argue that many individual investors care very little, or not at all, about the fundamentals. "At this point there isn't [that focus] for most investors," Dreman says, with more than a touch of lament in his voice. Even at the professional money management level, the fundamentals have taken a back seat to an investment discipline based more on pure momentum: If a stock is going up, and its earnings are growing (or just expected to grow) at a relatively fast pace, don't worry about the price of the stock vis-a-vis those earnings--just buy it, before someone else does.. latimes.com Tomorrow just after the open. I'm going to buy another 1k short just a little later buy 1k long. With this kind of thinking it's a hedge day traders dream. Like I told you the other day, it's all about discipline. Maximum pain. 5 points up, then slam the lid shut. Maximum profit? Lets just see how greedy I get.