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To: Blue On Black who wrote (6594)	4/11/1999 12:54:00 AM
From: Druss	Read Replies (2) \| Respond to of 12754

Lee--I figured out that internet and .com stuff and why the traditional models of valuation don't work. It is kind of like the Y2K math I explained to you once. This is a new paradigm. That means you not only apply a new way of looking at stocks but the old way is invalid. So when you are looking to invest it is ridiculous and stupid to look at value, revenue, earnings, or fundamentals. They don't count with internet stocks. You do not look at value in any way. Value is out in the new paradigm. This simplifies things because you are not stuck with all that damned math and those idiotic numbers connected to things like P/E and PSR. You see the key word is now potential. So everything is based on potential. However it is not a blind pie in the sky potential it is reality based. The basis is Microsoft. All internet companies potential must be compared to Microsoft. The words you use to apply these comparisons are bigger than, will pass up, the next, the ground floor of a, or the internet version of . The only math you have to use is to create big numbers. The numbers are based on conceivability. Here is an example: "It is conceivable that EFAX could sell 20 billion a year in faxes on the internet. It is ridiculous but conceivable." Now forget the ridiculous part because this is the new paradigm and nothing suggesting billions for an internet company is ridiculous and there you are. Perfectly conceivable that EFAX will do 20 billion in business a year in faxes on the internet. Druss I have to thank all the folks on AMZN, Yahoo, and EFAX for posting clear examples of this new paradigm. They are constantly posting stuff like this and without them things like value might still be around confusing us.