Net stocks are off their highs (many of the highs
recent ones). For example:
1/2 141 1/2 (about 20 minutes ago)
AMTD 188 3/8
AMZN 199 1/8 162 3/8
CNET 159 1/2 112 15/16
EBAY 195 166
13/16 64 7/8
INKT 159 1/8 116 3/4
LCOS 145 3/8 93
YHOO 244 182
Of this group, AOL, as in the case
of past "crashes," has fared better than all of
them, along with EBAY and AMZN. This will always be the
AOL will come back strong. It always does. You shall
I think Stocktrader is right on with 160
estimate. Don't forget that earnings come out on 4/27.
There will be a week of buying into the stock prior to
earnings. It should be quite a show. I think AOL is going
to outperform all Whisper Numbers and we will rock
and roll!! Now is a great buying
. . . but he doesn't really want people buying
his stock. That's why it never split. Bill Gates, I
beleive, was the one who dethroned him as richest man in
the world. There may be a little jealousy there, but
I doubt it.
That doesn't make some of the
things which the man has to say any less valid. And face
it, he's right 95% of the time.
timing on AOL might be good, but lady luck had to be
smiling on us that we didn't get this correction before
The selling is too automatic, too
be motivated by fundamentals."
Bullied by Program
By James J.
4/15/99 7:33 AM ET
schoolyard game where you crouch behind
some kid while
your ally pushes the chump over backward?
how the startled mark would turn all crimson
be embarrassed and everybody would laugh at him?
That's how the bears made the bulls feel
What makes for such
humiliation? Perhaps that the Dow
Average, which is increasingly a relic in
kept rolling on, even as the DOT dropped over
and the Nasdaq fell nearly 3%.
And, like the
toppling in the schoolyard prank, the decline
indices experienced felt forced, almost artificial.
they too were pushed. Pushed by programs meant to
Periodically, I will refer to
program trading's downside as a
reason why the market
falls. Yesterday, there was an
incredible amount of
put activity all day in the indices --
triggered by Intel's (INTC:Nasdaq) poor
by expiration Friday -- that eventually
translated into a disastrous last-half-hour selloff.
Again, let's go over what program means. That
someone's selling something faster than buyers
buy, or buying it faster than sellers care
to sell. That means
the machines are spitting
out orders that can't be digested.
I go in to buy 5,000 Microsoft (MSFT:Nasdaq) at
87 and get an 86 report, I know the mechanical
programs are at work. Any time I try to buy
(EMC:NYSE) at 126 and get a 125 report, I know
programs are at work. The selling is too
stupid, to be motivated by fundamentals.
That's why I was on the buy side of these names.
joining the selling simply because it is
vicious and ugly is
not my game. I understood the Net
selloff yesterday. The
griddle got too hot. I also
understood why some of the chip
stocks, as well as the
boxmakers, would be weaker off of
Intel. There was a lot
of good news yesterday in banking
and tech, but
by the end of the day, the good news didn't
to matter at all.
To me, good news always
matters. That's why I was
buying, not selling, the
quality financials, drugs and
That's what I will be doing again today.