Some Dot Coms are Dot Cons (The future of the .com industry)

Name: delph

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Product:	The future of the .com industry
Date:	15/12/00 (11 review reads)
Rating:

Advantages: Consider the facts

Disadvantages: The hype

Well, the dot com revolution seems to have come and gone. In the process a number of investors new to the market have lost a packet and will probably stay away from the market for a good length of time. Meanwhile the institutions have mangaged to make a shedload of money by getting in early and bailing out and soon as they have seen their profits.

The 10 major dot coms that floated last year and which have shares available to the public are languishing below their float price. Meanwhile the 10 dot coms that floated last year with shares only available to the institutions are still showing a profit. This just goes to show that the private investor always gets the thin end of the wedge.

With the benefit of hindsight, it is clear that the dot com bubble burst following and possibly as a result of the floation of LastMinute.Com. This flotation created dissatisfaction all round with private investors getting 35 shares, currently worth around £25!

There are some good dot com and high-tech companies out there. The trick is being able to see the wheat through the chaff. The dot com revolution is dead, long live the dot com - it was nice while it lasted.

By the way a sage word of advice on the investing front is not to put more than 10% of your portfolio into high-tech companies. When investing consider the facts (i.e. the fundamentals) and don't be caught in the hype!

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