>On the Radio One news this morning they said (paraphrasing), "dot com shares
>may plummet today following the sudden drop in share price and speculation
>about Amazon in the US". Are they trying to *make* a story or something?
Of course they are. 90% of news these days is speculation. "Tony
Bliar today will say..."
After Boo.com they will be looking for other disaster stories, and
Amazon shares did drop 20% on Friday, so this was a reasonable guess.
Of course they are. By broadcasting such speculation, it becomes a
event - the 'private investors' get twitchy from the news, and make it
> Of course they are. 90% of news these days is speculation. "Tony
> Bliar today will say..."
But in those cases, they have advance press releases of his speeches, so its
It was on the cards...Streetsonline have overtaken Amazon, certainly in
Europe and if you do a search on shopsmart.com for a book you will find that
Amazon are one of the more expensive compared to some of the others. Brand
name and first mover advantage can only last so long, especially on the net.
But the whole point of the first mover advantage argument is that it is
supposed to last, and first movers are better off forever. If not it's clearly
better to wait for someone else to make the mistakes and be the second or
third mover. Personally I've never been convinced that there is any
significant advantage to being first, but in that case most net companies are
worth essentially nothing (no more than the cost of developing their
So I think the accusation levied against the newsmedia has some
But whether UK listeners and viewers will react to the BBC
and make a lot of difference I would doubt. Most of them still buy life
insurance or pension schemes or save in building societies rather than
invest in their own stockmarket let alone the USA.
I cannot imnagine life fund managers and pension fund managers selling their
huge blocks of holdings without very careful research, including company
visits etc. But I would be quite surprised if many of them invest directly
in the USA rather than via specialist investment trusts with local managers
who again would do careful research rather than just listening to the radio.
I am sure someone will correct any wrong assumptions here :-)
Sincerely, John de Rivaz
my homepage links to Longevity Report, Fractal Report, my singles club for
people in Cornwall, music, Inventors' report, an autobio and various other
Bryan K <bry...@btinternet.com> wrote in message
> On the Radio One news this morning they said (paraphrasing), "dot com
> may plummet today following the sudden drop in share price and speculation
> about Amazon in the US". Are they trying to *make* a story or something?
>On Mon, 26 Jun 2000 21:07:25 +0100, "Bryan K" <bry...@btinternet.com>
>>On the Radio One news this morning they said (paraphrasing), "dot com shares
>>may plummet today following the sudden drop in share price and speculation
>>about Amazon in the US". Are they trying to *make* a story or something?
Although Amazon calculate they have many months' cash in the bank,
they could run into problems raising cash at a later date. With their
share price a fraction of what it was, surely retail investors will
stick 2 fingers up if Amazon try to raise cash by floating more
Institutional investors might also be reluctant to part with cash as
despite Amazon's respectable number of customers and zillions of hits
on their websites they seem incapable of making profits.
Remember that catchphrase: "It's the economy, Stupid". In Amazon's
case, this should read "It's the bottom line, Stupid".
Watch as I win or lose on the London stock market.
Can I turn 3500 quid into 100 grand?
Sure, but when the Sunday papers tip a stock the price is much more likely
to rise in the following days and there was that recent bout of sackings at
the Mirror over (alleged) abuse of it. If an institution like the BBC
broadcasts it then smaller investors might be inclined to at least have it
in the back of their minds. I'm not saying that of itself it would cause a
crash, but it's not likely to cause a rise is it? These days there is so
much cash resting on stocks that I don't think the BBC should be reporting
on things that *might* happen. They should stick to the facts, that's what
news is about. Ok, so it was a fact that they might fall, but I hope you get
what I'm saying.
Bryan Kennerley mailto:bry...@btinternet.com
North Wales Index - The Web Index for North Wales
http://www.northwalesindex.co.uk (1375 links and rising)