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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (1410)	4/28/1999 11:05:00 PM
From: Mad2	Read Replies (1) \| Respond to of 3543

Kerry Read on. This whole sector is out of control. Throw boatloads of capital at these guys who are spending it with little idea where they're going to be with it. Strangly enough the market keeps rewarding the sector with higher valuations, stock prices and gobbles up every IPO that claimes to have a modem connected to the internet (or plans to). What happened to 18-36 month payback on capital. I predict that when all the hoopla over e-tailing is done people will realize that everyone is in the e-tailing business, with few barriers to entry. At that point if they're smart the brick and mortor guy's will tout their e-tailing capability (like federated's aquisition of Fingerhut at 18 times net or 10X EBIT, now there's a deal) and more importantly they're physical locations where consumers can go for returns, service or whatever stepping in to take their share. My point is few winner's (except the consumer) will emerge. Chief Executive Officer Jeff Bezos said such results are consistent with the company's strategy of investing heavily for the foreseeable future to build a virtual store where consumers can find ''anything they want to buy online.'' Just this week the company announced it is acquiring several new businesses including a rare books supplier for a total of $645 million in stock. ''It costs a lot of money to chase down new opportunities,'' said Steve Weinstein of Pacific Crest Securities. You bet Steve, but "Where's the beef?" As you can see the analysts that cover these things are right in bed with them. Best Regards, Mad2