|Our weekly list of
the 10 most
overvalued, overrated stocks. These are the stocks the analysts are pushing
and the crowd is rushing to buy. These are also the stocks which have the
farthest to fall
when investor sentiment turns. Stay ahead of the crowd, and avoid
these stocks where
mania has taken a front seat to fundamentals.
|(Proj. P/E )/(5yr. growth
1. eBay Inc.
|Online auctioneer that has been mistaken for a
stock. The online auction world is becoming increasingly crowded with few
entry. The recent entry of Amazon.com to the field is likely to put
the heat on EBAY
in coming quarters. Compare EBAY's valuations to established industry leader
When investors categorize this one in the correct industry (i.e. auctions,
it will have far to fall. Well publicized technical problems have put
a damper on
stock price recently.
|Internet search engine turned
on YHOO are at manic levels, even compared to its overpriced industry.
trying to provide the broad range of services that AOL does) are this year's
Unfortunately everyone has bought the stocks, and everyone in the online
arena has rushed
to start their own portal. Portals are increasingly becoming
commodities as they
race to please everyone by offering the same features as their
turns it will be ugly for holders of this stock. YHOO's current valuation
the next 5 years of earnings growth. Earlier this year the stock's market
surpassed the combined market cap of all stocks traded in Singapore.
|ATHM is the leading provider of cable-based and
digital line internet access services to consumers. Recent acquisition
makes company a player in the increasingly crowded portal company.
Trading at 196
times sales. Current valuations discount all growth out to 2003 and
leave no room
for error (or for advances in technology).
|Online broker has been spending heavily in an
maintain its growth momentum in the increasingly crowded and competitive
field. Company's recent spending will come back to haunt it when the
market downturn occurs and trading volume declines.
|The maker of software that enables internet
users to see and
hear streaming media programming on the internet. Faces competition
from many other
software makers (including Microsoft). Current valuation discounts
next 13 years of
|S&P 500 member AOL is the only blue chip
The company's current valuation levels discount ALL growth out to mid
Company faces competition from Excite At Home and portals among others.
|Lycos stock is making a run to overtake YHOO as
overvalued portal. Escaped recent internet sell off. Merger
hopes drove price
up. Stock price held up well during last month's Internet
|A leading internet portal and content player.
C/Net television program and the SNAP! portal among others. Trading at
sales. Current valuation discounts expected earnings growth out to
|The company that brings you Silicon
Investor. GNET has
added its name to the list of companies trying to strike it rich in the
Current valuation discounts the next decade of growth.
|A brokerage firm that has been misclassified as
stock. The company, like all brokerage firms, is subject to the cyclical ups
and downs of
the industry. When the current internet stock bubble bursts it will be
than most--the "excitement" of online trading will lose its luster
market enters a sustained change in direction. Current price discounts
the next 7
years of earnings growth.
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