In five pages this paper considers the stocks and why traditional businesses are regarded as safer investments than the more risky Internet company stocks. Three sources are cited in the bibliography.
Name of Research Paper File: CC6_KSstckIntRisk.rtf
Unformatted Sample Text from the Research Paper:
Investors and venture capitalists alike lost value and hyperventilated over the recent fallout of the dot-coms, those darlings of business that promised to change everthing and make billions for those
involved in them. Those no longer with us can be seen as failing to fully or accurately acknowledge the customer, however. It is true that business has changed,
but the old principle of effectively filling customers needs has not. The arrogance of those determined to "do it their way" has led to their demise, allowing more efficient
and more customer-responsive models to emerge. Internet vs Traditional Business Models The downfall of many
of the Internet stocks that lost so much value was that there was no product or even real service associated with the operation of the Internet company. In contrast,
traditional businesses have more measurable and predictable valuation parameters. Risk assessment can be supported or refuted by individual companies performance in sales and revenues generated by whatever products or
services each company offers. Astutely, Guglielmo (2001) writes, "Last time I checked, the sky was still holding up its end of the bargain--just
look up and youll see fluffy white clouds decorating a blanket of blue. But to read the headlines and listen to the talking heads expounding on the dot-com debacle and
the tech stock meltdown, youd think the sky had fallen. Truth is, the Internet isnt going anywhere." How true Guglielmos (2001) words are!
There has been no regression of the growing importance of the Internet to business and to the lives of average people. Even those with no direct access are