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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Manfred who wrote (42991)	1/14/1999 2:30:00 AM
From: Frost Byte	Read Replies (2) \| Respond to of 119973

Great article from the Street.com on Internet downgrades today: A Showdown for the Net Stocks By James J. Cramer 1/14/99 12:15 AM ET Do the Net heads have the power to go head to head against the traditional analysts? Are there enough online traders to stem the declines that get caused by downgrades, or are these stocks in a world of their own, impervious to traditional Street research? Today we find out. The powerful, canny Alan Braverman, Deutsche Morgan's Net man, did the unthinkable, downgrading Yahoo! (YHOO:Nasdaq), Excite (XCIT:Nasdaq) and Lycos (LCOS:Nasdaq) after the close yesterday. These three horsemen have been pulling a ton of online water. All seem to be doing quite well. What I want to know is which is more powerful, the press release, because heaven knows these guys must have a hundred things they can announce at a drop of a hat, or an influential analyst saying tough things? Most of the Net trading for the last few months has been in the benign backdrop of a good market, good stock tape and positive analyst readings. Even as these stocks climbed, analysts continued to fuel the flames, not willing to question valuations publicly that some are revolted by privately. This first test will show not what the stocks are made of -- heck, we know the answer there, part tulip bulb, part teflon, part press release, part Kryptonite -- but what the owners are made of. Lately, the greatest source of discussion around the stock trading water cooler is what turns on these Net heads. They love news. They love CNBC. They worship stock splits. What happens when the lovefest meets ice-cold downgrades? I figure what happens will be right out of the Jeff Bezos playbook as the people who run these companies are dynamite stock managers. They will wait till the stocks get whacked but good and then issue a plethora of good news about alliances and ad deals, a virtual honeypot of good news stored up at the home office. I hate betting against the power of institutional research, but if I know my Netizens, they think nothing of it at all and attempt to take these stocks right back up on any good press releases. I'd bet with them against the Street any day.