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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: B. A. Marlow who wrote (982)	1/21/1999 8:23:00 AM
From: Bob Duncan	Read Replies (3) \| Respond to of 28311

BA Marlow: Thanks for the comments. Regarding your question about why I shorted GNET on the day it reported earnings, the intent was not to hold the stock overnight - I entered the order to cover the short about 6 minutes before the close at market, when I entered it the ask was 113 1/2 and I had shorted at 118. I did much better on the LCOS and YHOO shorts, obviously. Anyway I am still not sure why Etrade did not execute that order as 6 minutes seems like a long time to not cover. So, you question as to why I would short internet stocks is an interesting one. I am certainly not shorting based on valuation - if I was doing that I would have no money left :) Valuation plays are a sure way to lose in this market. However, I have made money playing the long side of these things, not because I believe the hype but just because other people do. I develop Internet projects (mostly using Microsoft technologies) for a living so I know what many of these internet companies are thinking. Believe me, most of them are well aware that they will never make a profit and the do not care. All they care about is pumping the stock, and many employees feel the same way. A couple of friends of mine who work at "blue chip" internet companies joke around all of the time about how stupid people are buying the stock of those companies at these levels, but at the same time love it because they are 25 years old and could retire at any moment! Don't get me wrong, I believe in this industry. It is just that the last few weeks short plays on most internet stocks have been profitable. When was the last time one could say that? Additionally, I personally think this internet bubble should burst soon because most of the skeptics are gone, people are saying AOL is good "value", and few have the nerve to say anything bad about this sector. As for quiting my day job, I have no intention of doing so as I intend to cash in on this internet craze with my stock options. I just hope the craze lasts long enough for me to cash out after vesting :) Good luck to you all.