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To: Don Morris who wrote (11371)	3/15/1999 10:24:00 AM
From: RDR	Respond to of 27722

Interesting article on investing in "Internet Stocks" from Merrill Lynch... Internet Stocks —March 12, 1999 While all some Wall Street traders want to talk about are the Dow and the magical 10,000 barrier, shares of high tech stocks, especially those involved with computers and the internet, continue to make their own move upward into record territory. Many of these companies have only been around for four or five years, and though the price per share for some has skyrocketed, these new firms are still trying to establish their staying power and earning potential. Merrill Lynch Senior Internet Analyst Henry Blodgett says their future growth possibilities makes adding them to your portfolio worth considering. Henry Blodgett, Senior Internet Analyst, Merrill Lynch, " These stocks have always been incredibly expensive and, unfortunately, it has not been a good predictor of their performance. They've obviously gone up in spite of that and, essentially with very open-ended opportunities like this, I think if you're willing to put just a small amount of the portfolio into them,... you can really look at the risk as being...not losing money, but really missing a lot of long term upside." Blodgett points to one Internet search provider as a prime example of just how fast some of the companies in this sector are expanding. Henry Blodgett, Merrill Lynch, "It's easy to forget that four years ago, really, Yahoo was a couple of graduate students, with a list of web sites and a vision. And now they are a $300-million annual run rate company, with $100-million in profit, and still growing about 200 percent a year. So it's really been spectacular." The global implications even further magnify the boundless potential of computers and the Internet. Just this week, Microsoft announced a new project aimed at giving millions of Chinese access to the Internet. The Egyptian Government has unveiled a plan to use the Internet to link villages along the Nile to help improve literacy. And now Iran wants to connect 1,000 mosques to promote the Islamic Religion. The only limit on just how to use the new technology seems to depend on the speed with which ideas are developed. In New York, I'm Ron DePaulis reporting.