Silicon Investor (SI) -- The First Internet Community

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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: mister topes who wrote (3198)	2/5/1999 12:19:00 AM
From: Kirk ©	Respond to of 15132

I just don't get it. Why would anybody buy an internet stock... because.... I work/write there. Cheaper than a trip to Vegas No one has heard of it so it is still selling close to what it came out at. Yes Don, a value play in the 'nuts! Small change but it if goes up 100X.... I make some money. 1000x and I make alot of money. Goes bust.... who cares as well under 1%? Rumors of BIG news but still WAY too small to show on day trader radar screens (they have told me so). Cheaper than 2 MBA units down the street at Stanford and alot more fun. Major competition having their IPO in 2 weeks. Drafting works in other areas besides Daytona Speedway. 'nuf reasons? 8) one more.... wish I had bought a few $K of Yahoo when they first came out....

To: mister topes who wrote (3198)	2/5/1999 8:24:00 AM
From: Allan Harris	Read Replies (4) \| Respond to of 15132

I just don't get it. Why would anybody buy an internet stock We have a little puppy on in our house, which the wife and kids are attempting to train to go poo-poo outside. Although there is some progress being made on this front, we all have to step very carefully around the house. So I am especially sensitive right now not to haphazardly "step in it" and thus, should know better then to attempt an answer to your question. But as a very happy GNET shareholder, let's just consider this my small part in keeping our valuable asset, SI, well, a valuable asset. Five years ago AOL was broadly condemned, by Barrons and the like, as the most overvalued stock on NASDAQ. For many months it was the most shorted stock on the exchange. Since then it has risen 80 fold. Fast forward to today we and we see that Internet stocks are broadly condemned in the financial press as the biggest bubble in 350 years. There is as far as I can tell, a near unanimous consensus mirroring your skepticism about the group. Mass fear and skepticism, at a Top? Maybe, but unlikely. I do not purport to know how to value these puppies with traditional fundamental, or even my first love, technical, methodologies. My approach has been to own a basket of them and just not worry about anything I read or hear in the media. Why? Maybe because the Internet is developing as the most important invention and advancement of civilization since the Gutenberg bible in 1455. I chose not to let the investment opportunity of a lifetime pass me by because I cannot properly evaluate a stock with no earnings, hardly any sales and no employees over 30. What it does have, is a future and a stock that reflects 100 times more demand then supply. I initially took 4% of my portfolio (where it that number come from?) and bought a basket of these puppies. I thought at that time that the worse that could happen is that they all go to -0- and I suffered a mild 4% correction in my holdings. The best thing that could happen is that they all go up 200-300-400-500% and I have to worry that they suddenly make up 15% of my holdings. Bingo. It comes down to this: The naysayers of Internet stocks have never recommended purchase of a single one. From the beginning, they have been simply wrong. What is different now that would suddenly turn these wrong-way Corrigans into seers? That these stocks as a group have gone up 500% in a few years? You can't just buy any dot-com out there and expect triple digit returns. But you can open your eyes to an opportunity in the sector and make an intelligent choice to participate, or not. Isn't that what Against the Gods and risk versus reward is all about? A

To: mister topes who wrote (3198)	2/5/1999 4:44:00 PM
From: Justa Werkenstiff	Respond to of 15132

don: Re: "The worst way to invest for sure is to force a trade into an overpriced stock or group." Last weekend, I was listening to a local financial talk show host. A caller states that he was invested in T Rowe Price Science and Technology but sold it off last year due to underperformance and put it into some financial sector fund. Of course, T Rowe Price Science and Technology soared after he sold out and his financial services sector fund did nada in comparison. He asked if now would be a good time to get back into T Rowe Price Science and Technology and close out his financial services fund. The local talk show host, a planner to boot, said it was a good idea to do a total lateral move because technology was the future, blah, blah, blah. This investor was a recipe for disaster -- buy high and sell low -- and was begging to be whipsawed yet again. The host never touched the valuation or timing issue. Somehow I think you have heard this one a hundred times over.

To: mister topes who wrote (3198)	2/6/1999 12:25:00 AM
From: Hank Stamper	Respond to of 15132

"Oh well, like they say, easy come easy go. The worst way to invest for sure is to force a trade into an overpriced stock or group." Yes! I post on the JDS Fitel (fiber optics co., just merged with UMPH; funny, it makes a profit and is fast growing) thread. That stock has gone from the low 20s (Canadian funds; I bought at 23) in the Fall to the mid-60s and even hit 70 one day recently! Once the price got into the 40s and 50s the sentiment went wild. Oh what a buy. Get more and more and more. In the 60s these people really went nuts and began to talk of 150 and 200. This is a company that has an average p/e for the last five years of close to 30 and it had never gone over 50 until recently when the p/e hit 70. I made several posts there saying the company has a grand future but the current price is out of line, and watchit, you might get burned at these levels. Oh, I was told by some, I am such a stodgy fellow and should understand that this stock is now a momentum stock and cannot go down so everyone should load up some more and enjoy the ride up, all the way to heaven. I was told that the stock has now achieved the status of a 'noticed' high-tech stock and, everyone knows those stocks always support p/e's of 80 or more. Okay. We'll see. Meanwhile, I'll just settle back into the fen winter here on Vancouver Island. I have taken some profits and added new cash to my accounts. My house is toasty and my pile of dry powder will keep for a while. Ciao, David Todtman

To: mister topes who wrote (3198)	4/6/1999 10:20:00 AM
From: Kirk ©	Read Replies (1) \| Respond to of 15132

Why would anybody buy an internet stock Well Don. Two months later, I can answer your question with a ton of profit on the books. 8) My subscribers are sure happy! Message 7670826 Volatility. Internets went down more because they went up more. Simple. Remember this post that caused your reply? Message 7662200 Since my "admission" that I bought a 'nut, BOWG has gone from 3's to $7 in that time (drafting on the MINE IPO) and the HWP I sold still has barely seen $70 much less the $82 I sold it at to fund the purchase. What is really weird, (too bad I didn't chase them - I'll stick to finding "value" in the internet field), but BCST, YHOO, AOL, etc are all crushing past highs. The question is "How high can these things go?". Just like picking MSFT 5 or 10 yrs ago, the goal with internet stocks is to find the ones that will be around in 10 yrs. best regards Kirk out