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Strategies & Market Trends : Working All Day, But Trading Behind the Bosses Back Thread -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (202)	1/28/1999 8:06:00 PM
From: Steve Smith	Read Replies (1) \| Respond to of 779

Hey Mark, DRIV came out with a good earnings report...reported a loss but revenues grew 600%. steve

To: Mark[ox5] who wrote (202)	1/28/1999 8:32:00 PM
From: Mark[ox5]	Respond to of 779

Greenspan said some Internet companies are bound to become major players as "a significant part of the distribution of goods and services in this country" moves to an Internet-based system. "They very well may justify even higher prices," he said. But "the vast majority are almost sure to fail." "Of course there's some hype, there's hype in lots of things," Greenspan said in response to questioning by Sen. Ron Wyden, D-Ore. But the central banker pointed to Internet stocks as an example of how the securities markets "endeavor to ferret out the better opportunities" and fund them before they're able to turn a profit. "That's good for our system," Greenspan said. "With all of this hype and craziness ... it's probably more a plus than minus." Something that Greenspan described as "the lottery principle" is at work in the world of Internet stocks. Just as in a lottery, he said, investors are willing to pay a premium when the potential payoff gets high enough. "What that means is when you're dealing with stocks, the possibilities of which are, either it's going to be valued at zero or some huge number," he said. "You get a premium in that stock price, which is exactly the same sort of price evaluation process that goes on in a lottery.