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Technology Stocks : UBID - an IPO spinoff of Creative Computers -- Ignore unavailable to you. Want to Upgrade?

To: White Shoes who wrote (448)	1/30/1999 9:48:00 AM
From: SHGLaw	Read Replies (2) \| Respond to of 581

As a general rule, I see no point in responding to really insipid questions. But I will make an exception this time. The "market" does not value a company's inherent worth on a day by day, or minute by minute, basis. So you start from a wholly erroneous basis, suggesting that because the stock went down one day that "market" doesn't like either company. Particularly as to net stocks, the "market" generally has no clue how to value the company because it has no paradigm within which to value a fundamentally new industry whose future cannot be compared to anything that has existed since prior to the civil war. Rather, these stocks are valued by supply and demand, with stock prices driven up (or down) by more transitory factors. The online auction industry came to the "market's" attention by eBay, and immediately grasped the interest of a substantial segment. However, that attention is somewhat fleeting at the moment, with the market acting like kids in a candy store. As interest is diverted almost daily towards or away from a sector, that sector reacts accordingly. The online auction sector has of late been deluged with too many offerings and far too much hype to make it easy to discern who is for real and who is not. All of this has influenced the stock prices of uBid, eBay and its wealth of competition. Also, most investors do not do their due diligence, and have not so much as gone to these sites and compared their business models or product lines. They react to news stories, analysis (which has been horrific when it comes to net stocks and has almost always been far off base or far behind the curve) rather than think for themselves. As to uBid, I have done my due diligence and arrived at a conclusion. That conclusion is that uBid's business model and site are significantly superior in the long run to eBay, and I believe that time will bear this out. Once the excess hype dies out some with the online auction sector, and people actually focus on the company rather than the daily price action, they will recognize that this is a foundation company, much like eBay but with a business model that will thrive in the near and far term. And the market doesn't disagree with me. The market simply goes up and down, reflecting interest or lack thereof. SHG