and not dampen the longs hope to the point that
they refuse to buy no matter how low it
I'm taking some time off soon, I can only do this for
1-2 months at a time before I need a
Looking forward to the next wave of optimism before FED
PART 2- begins
The RYAN JACOBS and KEVIN
LANDIS type of fund managers are down big, more than 40%
-- they felt immune to market pressures as long as
they controlled the floats of their own stocks with
the inflow of investor $$ to their funds. They should
have seen this coming when the insiders started
bailing and the dot-com world went kaput, but they
didn't. They just bought more with JOE BLOW�S investor
$$$�s just like the GEORGE SOROS� of the world. They
also didn't feel there was that much risk.
anymore, with the insider sellers, venture capital
sellers, and finally, the redemption sellers -- the tech
mutual funds have no choice but to sell stocks like
AKAMAI because people are giving up on them. And who can
blame them? It�s Payback time for the horrible
performance, no more easy money for 24 year manager�s and
analysts. Their minute of fame is over! People are now
starting to feel downright poor.
Can RYAN or KEVIN
admit to the fact that their funds are having
redemption problems? No, they can't admit it. That's like
saying, "Hey, I am George Bailey, come on down to the S&L
and take all of your money out." They have to say the
inflows are robust. Second, these people have only
bought, they never sold, unless one of their stocks blew
up. In that case, they took the stock "to a level,"
meaning they dumped the stock quickly, in one day, and
then moved on. The brokers can no longer unload
massive shares in a down market even is they are priced
down 50% or 60% like in the past. Most of us (except
TEAL and KIND_BUD) who were so eager to buy the
discarded mutual fund stocks now realize that the stocks
had been so walked-up that the prices we paid turned
out to be no bargains.
Many tech funds are
all battling each other to sell the same set of
stocks, and many people, like me know better. We know
that the stocks were moved up substantially by these
same funds and we know their holdings in these
overvalued stocks wound up to be millions and millions of
shares in size.
As more mutual funds are forced
to sell, they are overwhelming their own markets and
taking stocks down on very little volume and not selling
enough to meet redemptions. They were all hopeful that
something would happen -- a post-Labor Day rally, a
Thanksgiving rally, a December rally, a Fed Reserve rally and
Bush rally, a Christmas rally. They would not have
used these rallies to sell because that would be
selling into strength, and they never do that. They were
hoping for the rallies for more fund flows to make it so
they didn't have to sell. They were looking for your
money to prop up their positions or pay off those who
The only way to beat Wall Street is
to play the cycles, and right now, the cycle is
Remember Listen to DFS and profit from
AKAM on DEATH WATCH 2001
stock won't ever see such lofty valuations again.
The first part was posted on 12/24.
and internet mutual funds are down over 40% for the
year and they do not know how to sell in a down
market, just like most individual investors. Who do you
think created this vicious down cycle?
last few years, mutual funds have been taking in huge
amounts of money and then buying their favorites without
caring what price they paid because they were willing to
pay any price-to-sales ratio that they could justify
under a "everybody else is paying it" philosophy.
When Joe Blow investor saw the returns these fund were
getting he was more than eager to mail a check to them,
which then generated more inflows which then generated
more incredible performance!
Then Joe Blow
investor saw the E-trade ads and decided he could do it
better than the fund managers and drove the market even
higher by borrowing money to do so.
The Fed rate
hikes finally took their toll,the first to be wiped out
were the individuals who played with margin and now
this bear market threatens to waste many tech and even
non-tech mutual funds. Remember the 24 year old Ryan JACOB
and the Jacob Internet Fund (JAMFX), it was the worst
performing equity fund this year, down nearly 66 percent.
Think it will survive? Will he still be playing the
markets next year with AETH and AKAM(both major holdings
of his pos fund)?
Troll? She? Is this a female? They seem pretty
bold for a woman! That is concerning to me because I
think AKAM is a great stock! I again am in at 190, 69,
57, and 39. Terrible investment return for know. As I
said, there are some great things happening with a
continued client development plan AKAM has seem to perfect.
I am confident a 300-500 share price in 5-7 years
is a great return on my investment. It will be in
AKAM or the stock of a company that would have bought
them. Yeal, it sure is good to discuss BENEFICIAL
insight and limit the continued smack on this board.
Please continue writing and I will continue
"I am looking for growth and would be happy to
have a $300-$500 per share price on AKAM in 5-7
What you are talking about is a return of over 2000%
in only 5-7 years? That is a bit foolishly bullish.
Maybe it would happen but you have a better chance a
winning POWERBALL than picking the next CIEN or MSFT.
This is not an attack against you. I have been
foolsihly bullish in my younger years as a trader and paid
the price. Look for good proven stocks that are
beaten down. Don't try and hit a home run. I invested in
healthcare back last April because of it's low P/E. I have
sold most of my health care and have been slowly
buying into good solid beaten down semis and other tech
now. I do this in my longer term swing trade account.
You can get good returns if you buy good stocks
during a big down turn in the sector. Please buy
RIDING THE BEAR, by Sy Harding. This book will help you
understand how the market works.
Be carefull. SOMETIMES the market will not agree
even if you are right. I once shorted RMBS at 76 after
a big move up. It ran up so fast that I lost 8
points in 10 minutes and then within a few days hit 140.
My account would of been trashed. I was right longer
term. RMBS is in the 30's today. DDR ram is the future
not RMBS but the market did not care. Just keep a
Even AKAM could run. But it is so