-Caveat Lector- ------------------------------------- Thursday, January 28, 1999 Published at 20:41 GMT 'Internet shares lottery' 'Internet shares lottery' Federal Reserve Chairman Alan Greenspan has compared buying Internet shares to purchasing a lottery ticket. He said that while some Internet stocks are worth the prices being paid for them, the "vast majority of Internet companies are almost certain to fail". Investors buying shares are effectively gambling on which companies will succeed according to Mr Greenspan. He said the 'hype' surrounding the Internet could have contributed to investors rushing to buy stocks. <Picture: [ image: width=150]> Mr Greenspan is the most influential banker in the world and his comments frequently move markets. This is the first time he has commented directly on the tremendous growth in Internet stock prices. However, on this occasion the market appeared to shrug off his comments, with Internet stocks enjoying another strong day on Thursday. Internet shares have soared dramatically in recent months as investors have become excited about the rapid growth in the popularity of the worldwide computer network and the surge in the amount of online business. But many of the companies have still to make a profit and there are growing fears from analysts that prices may have risen far too high, too soon. Mr Greenspan's comments were backed up by some share experts. Barry Hyman, a market strategist at Ehrenkrantz, King and Nussbaum in New York, said: "He is looking at the reality of the situation." On the fast track <Picture: [ image: width=150]> Revenue in Internet companies soared through the roof last year, fuelling the US stock market rally in technology stocks. Leading Internet companies are now worth more than some of the most illustrious and established firms on Wall Street. According to a Financial Times survey, Microsoft has recently taken over from General Electric as the world's largest company by market value. Yahoo!, one of the few profitable Internet companies and the leading portal on the Web, has also been a big riser. Valued at $50bn, the company is now worth twice as much as Boeing or Texaco. Merger excitement The huge growth in the Internet has sparked a flurry of merger activity as companies seek a bigger share of the market. This in turn has pushed prices higher. Earlier this month, high-speed Internet provider @Home bought Excite, one of the leading portal websites, for a staggering $6.7bn, in one of the biggest Internet deals ever. Last year, AOL paid $4.2bn for the acquisition of Netscape. Opposition to Clinton Testifying before the Senate Budget Committee, Mr Greenspan also reiterated his opposition to President Clinton's plan to invest big budget surpluses in the stock market to fund the US social security programme. Mr Greenspan warned that the plan could put the US economy at risk. "Investing a portion of the social security trust fund assets in equities, as the administration and others have proposed, would arguably put at risk the efficiency of our capital markets and thus, our economy," said Mr Greenspan. The Economy Contents DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
