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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Lane Hall-Witt who wrote (38907)	5/9/1999 12:59:00 PM
From: bobby is sleepless in seattle	Respond to of 120523

Lane...ditto, on the mark. nothing has changed, we benefit as analysts issue their strong buy recs., focus one (vrio)...manipulation or not, a stated opinion which we have benefited from, and at times, worked against our positions...giving us better buy opps, or for those that play both sides, short (put) opportunities. Banc Robertson ananlyst??...tells us over a month ago, prices will drop dramatically after earnings season concludes and Barron's article only affirmed the direction we already were prepared for as the earnings season pinnacled for nets, so did prices... and yes, as many have indicated, the nets will rally once more, only each time as we contract/expand there will be a bias/refinement toward quality issues. And indeed, not looking to be a hero...rather, like to see the odds in my favor, win a few, lose one or two, and then smile on the way to the bank...

To: Lane Hall-Witt who wrote (38907)	5/10/1999 3:22:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

Lane, that's true. I didn't have much to do with the proceeds from the gains in the Net stocks in April, so I bought into the cyclicals and kept some aside in cash, but was really surprised to see them rise that much. Those are the kind of companies my parents left me 10 years ago and were not up that much at all. I kept them there from about Mid March and accelerated the transfer near the end of the earning season (mid April). Since I use my husbands fidelity, datek accounts I knew I could use the money as soon as the nets/techs came back. And I'm antsy to start trading them seriously once again, but not to through caution to the wind either. But I'd like to sell them off especially since most of them are now at 52 week highs and I think money will now flow out of them I looked at cyclicals as only slightly beter than a short term CD that gave back a bit more than expected, but only as a depository of the net gains. Now I feel the nets and all ancillary companies would benefit from the next surge. But there are problems to be worked out. Like one astute poster said with the teaming up of AT&T & Media One leaves AOL at a disadvantage and it too must team up with high speed access providers. If I were a company providing cable modem access I'd sure like to write a contract with AOL and its 17 million subscribers. According to International Data Corp. by 2003 IDC expects that figure of 160 million logged on to the internet to mushroom to 500 million. Online spending is also in for considerable bump. IDC predicts that businesses and consumers, which spent a combined $50 billion online in 1998, will fork over $1.3 trillion in 2003. So now we're talking real dough. Apply that to a company line online auctioneer eBay Inc., which is the Web's most trafficked site as measured by page views and average time spent perusing goodies like Beanie babies and antique pickle jars. The four year old upstart is already racking up $690,000 in revenue per employee, more than 4 times the ratio of super-efficient Wal-Mart Stores. That edge will grow because already profitable e-Bay won't have to add many employees to ratchet up its offerings. Much more revenue not much more cost. It doesn't take a rocket scientist to figure out that economies of scale like this enjoyed by numerous web leaders will lead to a rosy future. Maybe a market cap of $26 billion doesn't sound so far off after all. Companies like AOL and Yahoo, have consistently blown through Wall Street's revenue projections. This is particularly impressive for AOL.. There will still be problems, new upstarts trying to transpose our powerful leaders like AOL and YHOO, but inevitably their sheer brand loyalty and technical expertise should makem them come out the stronger. If you believe the internet is a revolutionary force that will change the way we conduct business and how we buy everything from cars to cribs, then snapping up stocks valued at several hundred times earnings today may not be crazy at all. Indeed, it may be crazy not to.. excerpted from Business Week May 17, 1999