Indranil Das Gupta writes:
> Hi,
>
> Watch out Arup! As proven before discussions on movement of stock prices
> of a company & investor sentiments on the Wall Street can be rather
> volcanic on this list ;-)
>
> Anyway, despite being a strong backer for Linux myself, I would not like
> to put too much emphasis on the stock prices in evidence after the RedHat
> IPO. The stock prices of IT & Internet media companies are too much like
> trading in futures...they needn't necessarily indicate strong
> fundamentals.
>
> One small example of this would be a comparison between BarnesandNoble.com
> and Amazon.com... Amazon has a small fraction of the distribution volumes
> as compared to Barnes and Noble...also in terms of the ratio of actual
> purchases from number of visitors, Amazon is no match for the Barnes and
> Noble. Neither their profits similar....Amazon is actaul absorbing loses.
> And yet Azmazon is worth US $18 billion in the market, where as the
> fundamentally strong Barnes and Noble is nowhere near.
I believe that in the internet realm, rather than strong
fundamentals, it is "what people perceive you to be" what
matters. For example, Ebay Inc., is definitely NOT worth the $1.74
billion market cap that they are enjoying right now. It is not
because they have a sound base, as Indra rightly put it; just that
the Wall St wiggies think that there is some money to be made in the
short term with the firm's prospects and the brand name recognition
in terms of the hubbub that it has created recently.
-amlan.
--
Amlan Saha [EMAIL PROTECTED]
[EMAIL PROTECTED]
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