Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (2979)	5/27/1999 10:40:00 PM
From: robert miller	Read Replies (2) \| Respond to of 4467

Teflon, Interesting report from Keith Benjamin on internet stocks. Not specific for SFE. bob BANCBOSTON ROBERTSON STEPHENS Keith E. Benjamin, CFA - 415-693-3285 mailto:Keith@rsco.com Unsubscribe to: mailto:rsch_webmaster@rsco.com May 27, 1999 The Web Report - Volume 2, Issue #21 CAPITULATION - We have decided to issue the weekly e-mail a day early this week, based on our feeling that we are at an important inflection point in the Internet stock group. Most stocks have already fallen as much as we've seen in previous quarterly patterns. In our view, many investors appear to have given up after recent declines, demonstrating capitulation that typically defines the bottom. While it is almost impossible to pinpoint the exact day of defeat, we believe we are close enough to start to be more aggressive accumulating a broader range of stocks than we have been focused on over the last month or so. Because so many people appear to be scrambling to accurately forecast the bottom, we believe the actual day may happen sooner than the majority expects. WHICH STOCKS NOW?: Despite current apparent lack of discrimination, we remain convinced that stock prices will tend to mirror underlying fundamentals over time, with the winners eventually growing into significantly higher valuations. Because we expect June quarter results will exceed expectations at least as much as we saw in the March quarter, we expect the next reporting season will be a positive catalyst for the group. We are hoping for greater differentiation on the rebound between the big and small franchises. With so many recent IPOs, we believe it takes time for investors to appreciate new stocks. Today, we would recommend starting to build a basket of stocks, still over-weighting the leaders, but now including some of the emerging companies. We tend to rank these stocks by looking for near-term catalysts and valuations that appear reasonable to us relative to individual company market opportunities. As such, we would start with the seasoned stocks first and the larger, unseasoned stocks.