To: steve who wrote (7185 ) 1/18/1999 9:38:00 PM From: Peter O. Read Replies (1) | Respond to of 27311
Article from Individual Investor Online about ways to plan Net Stocks. An affirmation of our bet on VLNC!!!! Comments about playing net stocks..."Trend 1: Mobile Computing with Internet Connectivity The laptop market is the fastest-growing segment of the computer industry."..."Invest in companies that make laptop computers, remote access devices and the miniaturized circuitry, which makes it all possible." and COMPANIES THAT MAKE THE BATTERIES!!! Bid & Ask: The Best Way to Play Net Stocks Tom Byrne (1/15/99) iionline.com You think you missed the boat. Internet stocks go up 40 points every day and you think it might be too late. But you just can't stand the temptation. Your neighbors are making oodles of money with their lawnmower.com and buy-my-book.com stocks and you need to get in on the action. Internet stocks are a drug and you need a fix. Just one will do, just one Internet stock to feed your craving. If you really must be in Internet stocks, you still have time and opportunity and I'll tell you where to find it. But first, let me trumpet a loud warning. Stay away from all retailers/e*tailers. There is exorbitant competition, low barriers to entry and even lower profit margins in the new world of e*tailing. That means stay away from companies who solely ply their goods online such as Amazon.com (NASDAQ: AMZN), CDNow (NASDAQ: CDNW) and N2K (NASDAQ: NTKI). The best bets for those who must buy an Internet stock (or maybe more than one for those investors with a larger appetite) is to look for companies that can capitalize on the following trends. Trend 1: Mobile Computing with Internet Connectivity The laptop market is the fastest-growing segment of the computer industry. It stands to reason, therefore, that all these mobile computers will need Internet access functionality in order for them to remain attractive to the consumer. Invest in companies that make laptop computers, remote access devices and the miniaturized circuitry, which makes it all possible. Trend 2: Internet Access Devices Invest in products that allow users to access the Internet. Initially, the only way to view the Internet was by a stand-alone computer. Today, you can access the Internet via telephones, TVs, computer game stations, pagers and even wristwatches. Plus, the next generation product is the 'Internet only' computer that is one third the cost of a conventional computer and solely provides Internet access. Buy companies that make modems, wire cable, fiber optics and satellite dishes. All of these allow Internet access. Trend 3: File Servers There are going to be thousands of online retailers and information websites that need file servers to house their websites. A file server is like a supercomputer with lots of chips and memory that provides a home for a website. Buy companies that make file servers. Currently, tops in the field is Sun Microsystems (NASDAQ: SUNW). Trend 4: Security This is the most overlooked trend among savvy Internet investors. As e*commerce proliferates, securing these transactions is vital to instill consumer confidence. Fraud is already rampant on the Internet and consumer confidence is not yet at an acceptable level, but it is growing. Invest in companies that have cutting-edge security software. Verisign (NASDAQ: VRSN) is one of the companies I like in this field.