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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: michael r potter who wrote (2167)	1/14/1999 8:46:00 AM
From: Mike 2.0	Read Replies (1) \| Respond to of 4467

I won't go long the internets, it's gambling not investing (geez I sound like Peter Lynch) but I won't short them either. The "missing link" in valuing these stocks IMO does not appear on their financals: the capacity of the internet stocks to obtain more cash from the secondary markets. If EBAY, AMZN et al announced another follow-on stock offering the market would lap it up big time. Given this, the cash burn rate of these companies becomes meaningless; in effect they have a cash printing press...at least for now. Contrast this environment with that of 1997 for some companies like Individual (now part of News Edge) whose "life clock" was ticking...losing gobs of money...and most important there wasn't any more dough they could get. This day of reckoning IMO will come to pass for the internets but not anytime soon. So Michael, I'm glad you will only be "virtually" broke with your virtual shorts on UBID and EBAY :-) My .02...avoid shorting the EBAY's and AMZN's, maybe consider LEAP puts if anything, and concentrate on the lower-tier internet dogs like PPOD etc. if you still want to go short.