From Library Journal
Just as the authors predicted, the Internet bubble has burst. Brothers who founded the business and high-tech magazine Red Herring, they had issued a warning in their prior book, The Internet Bubble: Inside the Overvalued World of High-Tech Stocks and What You Need To Know To Avoid the Coming Shakeout (LJ 11/1/99), which analyzed 133 Internet-related businesses and advised investors who held these stocks to sell. Of course, no one listened. Examining the charts and calculations of the same 133 overvalued companies for this edition, the authors discovered that every company has indeed lost value. Here, they delve deeper into how individual investors lost significant amounts of money, showing that venture capitalists, entrepreneurs, investment bankers, and those who underwrite companies had access to "insider" information and were thus able to capitalize on speculative initial public offerings (IPOs) while pushing unproven companies onto the unsuspecting average retail investor. Despite these findings, the authors remain bullish, arguing that the emergence of new technology has created interesting growth investment opportunities and that the "high-tech industry still has a great future that investors can profit from if they know where to look." Recommended for business collections in public libraries. Bellinda Wise, Nassau Community Coll. Lib., Garden City, NY
Copyright 2001 Reed Business Information, Inc.
From Booklist
The Perkins brothers, who are the force behind the high-technology business journal
Red Herring, have re-tooled
The Internet Bubble: Inside the Overvalued World of High-Tech Stocks--and
What You Need to Know to Avoid the Coming Shakeout (1999), in which they warned that "every one of the 133 public Internet companies is overvalued" and advised anyone holding any of those stocks that "it's time to sell." Now that all but 10 of those 133 companies have lost significant value, the Perkinses explain how they expect the Internet sector ultimately to recover--this time without the speculative frenzy--and provide performance data and guidelines for determining which companies are poised to rebound. Little has changed, though, in this update on the role that venture capitalists and investment bankers have played on the Internet, the investment risk posed by biotechnology stocks, and the risks of getting caught up in the frenzy of initial public stock offerings. Because of the original accuracy and the timeliness, demand for this revision is guaranteed.
David RouseCopyright © American Library Association. All rights reserved
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