Re: Speculative bubbles and internet stocks

From: John Conover <>
Subject: Re: Speculative bubbles and internet stocks
Date: 18 Aug 1999 17:30:34 -0000 writes:
> Are Internet stocks over valued and is this  simply another speculative
> bubble?
> I read this week that the market capitalisation of Yahoo is greater then
> Boeing.  Given that  the tangible assets of these Internet companies are
> almost insignificant and that few if any have declared profits. The
> valuation is therfore (obviously) based on expected future returns.  In a
> market where  no significant barriers to entry exist,  expectations of
> profit must be far in excess of what can ever realistically be achieved.

The answer is probably yes. But it is not unusual-the market has tended
to run about 15%-25% overvalued for most of this century, (depending on
who is telling the story.) There is some information at:

and some links at:



John Conover,,

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