Hi Michael,
Ebay has set the course for strong growth companies who are prepared to invest in Capex will reap the rewards.
Yahoo,Intc,Msft,Aol,Over etc.....................have all failed to do that over time. Sooner or later it was bound to catch up with them. Capex is what makes the world go around. Consumer spending is secondary.
So far, Ebay has been the only one to show excellent profits combined with excellent 2003 guidance. Look has got to do the same. The price will reflect that come Q4 results. If for any reason it fails that then it will get hammered just like the others.
I have no doubt that it will easily beat the street and show excellent 2003 guidance. My only concern at present, is how far will it drop before it turns around.
Monday will be a Bloodbath! Not because of the fundamentals changing, but because of many nervous investors unsure of the US climate and reporting into next week. Economic indicators have been dismal. If they are to continue, it will provide excellent opportunities to buy in at lower prices before the 4thQ results. Remember Ebay was also tarred with the same brush until they posted outstanding figures which no one could deny. Definately a "News Driven 4thQ"
IMHO!!!!
Cheers markco
LOK
looksmart limited
