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To: musea who wrote (3230)	1/24/1999 2:07:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 41369

Musea, It is interesting that you comment about retailers banding together to form a mall to battle the large chains, because about a month ago I published a terse comment to the effect that the portal companies like AOL represent the information age equivalent of the shopping mall. I want to own the mall rather than the store that rents space in the mall, because I don't know who the eventual e-retail winners will be. But I figure that the surest way to make money is to invest in companies that provide the infrastructure required e-commerce. This includes companies like the network hardware vendors (ASND, CSCO etc.), network security companies (like NETA), and portals (like AOL and YHOO) I expect that the greatest retail advantage will accrue to specialty retailers who will not need to discount to sell their wares. For example, I love beans and peppers (this is absolutely true!). I cannot get the more esoteric varieties locally. So I have two choices: either I shamelessly solicit friends that I make on the web for local favorites, or I buy from web-based specialty stores. The interesting thing is that it is frequently much more expensive to buy these specialty items on the web then to buy them locally in traditional retail outlets! So, depending on the quality of their web sites, and the quality of the portals they use, these companies stand to make quite a bit of money e-tailing -- probably because there is such limited competition for their market niche. Financial services have already seen a major restructuring as a result of e-commerce. Virtually all of the brokerage houses have an internet-based discount arm. Even ML will have one soon. This has probably thrown a number of brokers out of work. Banking and insurance are other examples of companies that have felt the impact of e-commerce. Please keep your thoughts coming. I find this a highly stimulating discussion, and value your comments -- all of which I find intelligent and well thought-out. I think this discussion goes to the heart of internet investing! TTFN, CTC

To: musea who wrote (3230)	1/25/1999 3:16:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 41369

I think the internet and e commerce are also a threat to Microsoft and to ERP, supply chain, and other software sellers. You download the software as Java program and do not need to have Windows installed on your PC. In time, the PC itself may be under threat by the Internet. Dell may have to sell cheap internet applicances as you boot up your "window" by swiping your Java card... AOL (and other major portal/malls)becomes the provider of windows web top windows with a Java dial tone (McNealy's buzzwords) On the other hand something scary: ONSL will give away merchandise at cost, making money by just providing access to the product I guess. The impact of all computer trends has always been DEFLATIONARY. IMHO JHG