Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (5740)	1/12/1999 10:44:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78672

The Internet Stocks I have a few thoughts about this topic. Essentially, most of the retail, advertising, and trading being done on the net is just substitution. Meaning that if there was no net, it would be happening anyway in its prior form. At bookstores, standard retail outlets, other forms of advertising, via telephone to brokers etc... So no matter how you slice it, if the net stocks are really worth a lot, then somebody else out there is worth much less than they are currently trading for. Somebody is very overvalued. The net's gain is somebody elses loss. My guess is that if the world is going to change that much, and I think it is, the Walmarts, ATTs, Merrill Lynchs and the media giants etc...of the world are not going to stand idly by and get destroyed by a few upstart capital short businesses. I am in data processing. The creation of a web page is very cheap. It is the advertising to build the reputation that is expensive. But if these companies sell for 20-80 billion dollars and it would only cost a few million to develop the best possible web page and other resources you need, that would leave 19.99 - 79.99 billion for advertising to duplicate the best net business on earth and knock the upstarts off. Somehow I can't see anyone paying 20-80 billion for a business that can be duplicated for a few million and another 'x' million in advertising to gain the same business position. The biggest guys have the resources if the business is there. They are not going to pay 20-80 billion for something that they can duplicate for millions. And they certainly aren't going to throw in the towel to a bunch of companies that are dependent on capital markets for cash since they make little or nothing from their operations. My bet is that practically all of them are going to go down the tubes until the prices get to a level where it makes sense for the big guys to buy one. Wayne Crimi members.aol.com