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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (40012)	2/14/1999 1:44:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>William bought, I believe they all have a great future AMZN excluded. << Glenn I prefer a LU or a Csco. They've proven themselves with their fundamentals. Ps The below seems to indicate that all is still calm. With the elephants. >> BOSTON, Feb 12 (Reuters) - Many Internet-related mutual funds posted negative returns this week as investors balked at rich valuations but the sector's positive growth prospects should prevail, fund managers said. Internet funds, in fact, still top performance lists this year despite turning down by two to three percent on the week ended Thursday, according to Lipper, Inc. The Nasdaq Internet Index, one barometer for measuring the performance of stocks of Internet companies, toppled 37.52 points, or 5.1 percent, to 697.95 on Friday. That came a day after it had risen 57.59 points, or 8.5 percent. The index closed the week 112.52 points, or nearly 14 percent, off its lifetime high of 810.47 points reached Feb. 1. "These stocks can't rise as quickly as they have for the past two months over an extended period," said Ryan Jacob, manager of The Internet Fund. "It's a bumpy ride and that's the nature of the beast." Jacob said the week's dip was exacerbated by broad stock market price swings. The less-spectacular returns will also give investors more realistic expectations than many now have, said Lawrence York, manager of the WS Internet Fund. As evidence of such inflated expectations, York recalled an e-mail he received from a potential investor asking if a 50-percent return for 1999 was "too conservative." "This just underscores that people really believe they should make 50 percent ... this is not real life," York said from his office in Lexington, Ky. Many Internet fund managers have adopted a more defensive strategy amid the recent market swings and have been slow to spend fresh cash. For instance, Jacob of The Internet Fund said he built his cash position to between 20 percent and 30 percent over the past two months, up from five to 10 percent earlier. "In this kind of turbulent market, it opens up opportunities and we can pick our points and begin investing some of that cash. But we're not going to keep throwing our money at a market that's going straight up," Jacob said. Some of the more volatile plays remained "high-flyers" such as Internet auctioneer eBay Inc. and giant Internet retailer Amazon.com Inc. , York said, because they have low margin business. Still, managers said the lure behind Internet sector investing -- that is, to find the next Microsoft Corp. will persist. York recommended "a little extra scrutiny" on Internet shares and a strategy that includes investing in mature high technology companies with Internet-related operations such asLucent Technologies, Inc. and Cisco Systems, Inc. . 18:58 02-12-99 <<