To: dstand who wrote (15719 ) 4/17/1999 3:20:00 PM From: The Flying Crane Read Replies (5) | Respond to of 40688
Hi everyone: I want to thank everyone for the great posts I've been reading. I love to read long thoughtful posts because it stimulates my left and right brains... From dstand:2. Internet stocks have been run up on emotion and greed. Most analysts believe they will fall hard this year and then rebuild at more traditional valuations. If the big guys fall, will they take the little guys down with them? The problem is that most analysts have been singing this same song for the last 2-3 years while the daring one with a vision keeping on racking up ridiculous gain year after year. There is no doubt that the high price of the internet high-flyers is creating fear among the investment arena. To buy any of the Internet flyers now will take a lot of gambling instinct to do so. Even from 2-3 years ago, you still need a lot of gut to buy. It is only because of hindsight now that 2-3 years ago seemed like a good time to buy. Why do Internet stocks continuing to climb higher despite warnings from the investment experts using the traditional valuations ? IMHO, there are still many out there who fail to see the inevitable shift of our economic and business efficiency due to the power of Internet. Traditional valuations , as the name implied, is based on our "traditional" business system. Not to say that our traditional economic and business system is inefficient, it is, in fact, the cornerstone of our current technological advancement. And I can tell you that I am very happy and lucky to be born in this generation where I can enjoy the fruit of our advanced technologies. The "traditional" valuation is based on our current economic and business efficiency that is rooted in the limitation of our technologies. Airplanes still have to travel long distance to reach other countries. Telephone is still restricted by "voice only". TV, our biggest achievement to date, is still controlled by the content providers. We will see their advertisements based on their schedule. We will ONLY see what advertisers have to show us within the time allotted to their airtime. The Internet changes all that! The power of the Internet, IMHO, provide the users the ability to CHOOSE whatever contents they like to see. And the power of Internet also allow the companies to SHOW all pertinent information to the potential buyers without the time and space limitation of the magazines and TV time slots. And this is just from the retailer-consumer's point-of-view. From the business-to-business's point-of-view, the changes are even more pronounced. Potential partners will no longer be limited by how many trips they can afford to fly over the countries or cities to show their presentations to interested buyers. The number one benefit from the power of the Internet is the reduction of overhead costs for all companies WITHOUT sacrificing performance! As a matter of fact, it actually INCREASES both the performance and the bottom line. The Internet, in its infancy stage, is still growing. Technological advancement will improve. Reusable rockets are already in the making to launch satellites up in our sky to provide wider bandwidth and faster access to our future internet access. (See link: kistleraerospace.com The whole economic and business system will evolve while internet technology continues to advance. Traditional valuation will become obsolete because it does not take into consideration the following inevitable fact:Infrastructure required to increase performance and bottom line by reaching out to the mass no longer cost arms and legs; in fact, it becomes CHEAPER ! While the P/E ration is completely out of normal standard, it is the DIFFERENT future that the traditional valuation fail to include in their valuation method. This, my fellow investors, is why I only invested in companies that deal with the future. Blue chips will only remain blue chips if they follow the inevitable changes. Otherwise, they will soon go by the way of dinosaur- become extinct. (e.g. "Wang Computer", the once giant company who controlled a big chunk of the "Word Proccessing" equipment business became extinct because they failed to accept the inevitable domination of the PC.) ProNetLink may start the business-to-business revolution by having a bold plan that involved all the top players in the industry. And it still baffled me that it is an OTC-BB stock. But then, we have heard of many stories about small companies growing so big that it swallows the blue chips of the old days…. Don't we? Good Luck to everyone who is on board of the PNLK ship. Let see where the wind will take us… Godspeed to PNLK and everyone. Again, all of the above is my opinion only. Remember, To Each His Own And Prosperity to ALL!