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Internet Stock Crash
By: Charles Randolf
Venture Capitalists are responsible for countless companies to pop on the scene and become darlings in the stock market, based on the hot commodity of internet stock purchasing habits rather than performance of the actual company has lead to trend buying of anything internet related - but how long can it last?
According to some experts, not too much longer now.
One of the minor problems facing internet stocks is the Y2K bug, which will make fools out of some companies and heroes out of others.
Many companies are coming along to cash in on the stock buying trend, without actually offering anything with any substance. This is another bit larger problem facing the future of net stocks.
Of course some stocks aren't actually worth the multiples of their stock values - but the champion companies are - so focus your attention on companies that can really perform.
What The Experts Are Saying
Another problem the market is facing is a philosophy that even though 9 out of 10 internet companies may go bust - it will still lead to profitable investments. This is one of the reasons why summer stock buying has caused a surge in this market sector.
Experts theorize that after the third quarter earnings show shortcomings with a dismal fourth quarter on the way there will be a race to dump the poor performers before you can spell tax write-off.
Smart buyers are seeking an escape time of somewhere before or after October.
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