Intelligent Investor

Internet stocks review

The Internet may be changing the way people communicate but it’s also changing the way investors value a company. How long can this party last?
By · 7 May 1999
By ·
7 May 1999
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Beneath these heavy weights lie a school of minnows, some of which are still refining concepts or merely trying to make hay while the sun shines. And you don't have to go far to find out just how fickle investors can be towards such stocks. After listing with a bang in June 1997 Sausage Software's (SAS - $1.39) share price fizzled to a low of around 20 cents. It then catapulted to a high of $1.60 in a matter of weeks on news that a contract had been signed with Telstra as part of the company's strategic move to develop e-commerce solutions for major corporations. The believers have finally got their dues as interest has once again been re-ignited. After such a long time in the wilderness investors should be looking to take some part profits, otherwise HOLD for a bumpy ride.
IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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