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Technology Stocks : Cyberian Outpost (Symbol: COOL) -- Ignore unavailable to you. Want to Upgrade?

To: CGarcia who wrote (859)	12/25/1998 3:59:00 PM
From: Nelson Chang	Respond to of 1932

>>>Alot of people think of internet stocks as a "trend", like biotech stocks were in the 80s...But when you take a real good look at it, the internet offers endless possibilities that biotechs never did...These stocks cost as much as they do because people see the internet endlessly growing...and with it so grows the chances of having huge profits through internet companies....I personally don't see this sector as a "trend" and when I take a good look into the future, I can only see the $$$ growing as fast as the internet...I'm not saying the Amazons and Ebays are worth as much as their current stock value, but I am saying that I don't see the internet sector ever crumbling the way some "experts" would have us believe. <<< CGarcia, I don't argue w/ that in the least. I spend much time on the internet other than trading. And it is increasing. However, you miss one point. It's that we are trading stocks. Stocks in the end ALWAYS required a fair valuation. I'm not saying YHOO and AMZN are not fairly valued, I think they are. However, many of the lower tier stocks are trading at absurd market caps, supported only by AMZN and EBAY. Some of these companies have horrible balance sheets that will probably become bankrupt before long. The market eventually will separate these leaders from the speculative "small caps." If you don't believe this point, you haven't been in the market long enough.