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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (335)	4/21/1999 1:05:00 PM
From: jbe	Read Replies (2) \| Respond to of 419

Dear me, Chuzzlewit, I think you may have missed my point (which, admittedly, was obscure). 1) You say you agree with Siegel that "internet stock valuations do not seem to be driven by fundamentals." So do I. 2) Then you paraphrase my question as follows: "Why then do stocks that are not primarily internet companies get crushed when the internets fall?" (You should have added: "...and appreciate when the internets appreciate.") You then suggested some possible answers. I still prefer my own answer to that question, which is, basically, that these companies are perceived to be "internet companies" by the people who are buying them. Otherwise put, their internet business (even if it is only a portion of their business as a whole) is the only reason the buyers are interested in them in the first place. We are talking very short-term price fluctuations here. Take this week, for example: down 30% on Monday; up 15% today, & etc. That is hot-potato-tossing, not based on any analysis of a company's business. 3) You say: You are really telling [me] that you are envious of the returns that the momentum players seem to generate. ???? Whatever gave you that idea???? Take another look. What I thought I was saying, or at least implying, was that it BOTHERS me when a stock that I have purchased because it meets certain criteria is "taken over" by momentum players who don't give a damn about those criteria; in other words, when the stock becomes a "captive of the craze". SWS has generated good returns for me, so far. But I could just as easily have made the same good returns by purchasing a piece of junk. That's the problem. 4) I agree, of course, with your analysis of market risk & business risk. Who doesn't? jbe