RE: UKNM: More overvalued stocks

[Steve Johnston]

This is not a debate about the efficiency of the market. This is an

observation about how a simple matter of supply and demand can

masquerade as a confirmation of worth.


Steve Johnston

steve [dot] johnstonentranet [dot] co [dot] uk

Mobile +44 (0)7901 853273

Office +44 (0)1491 878787


> -----Original Message-----

>

From: Phil Sykes [philcentre [dot] net [dot] uk (mailto:philcentre [dot] net [dot] uk)]

> Sent: 26 July 1999 10:18

>

To: uk-netmarketingchinwag [dot] com

> Subject: RE: UKNM: More overvalued stocks

> 

> 

>  To throw in some of my piss-poor economics knowledge, 

> doesn't an perfectly

> efficient market depend on perfect knowledge?

>  

>  I don't think the vast majority of people who've bought 

> Internet stocks in

> the US have anything approaching perfect knowledge - many of 

> them just seem

> to buy anything with .com in it.

> 

> Phil Sykes, CentreNet

> http://www.centre.net.uk/

> 

> > -----Original Message-----

>

> From: Sean Phelan [seanmultimap [dot] com (mailto:seanmultimap [dot] com)]

> > Sent: Friday, July 23, 1999 10:34 AM

>

> To: uk-netmarketingchinwag [dot] com

> > Subject: Re: UKNM: More overvalued stocks

> > 

> > 

> > Hm.... "overvalued"... "overpriced"....

> > 

> > Doesn't anybody believe in the theory of efficient markets any more?

> > 

> > If you don't believe that markets are efficient today (ie 

> > market prices

> > reflect all available information, discounted for risk, 

> > liquidity, etc),

> > do you believe that markets have historically been efficient?

> > 

> > There is a vast body of research (and I mean real research by 

> > very smart

> > people who can not only spell econometrics, but understand 

> > what it means

> > and have spent entire PhDs and careers doing it) that 

> > supports the belief

> > that markets have been efficient from 15th century Florence 

> > to the present

> > day. The last two hundred year's sterling bond prices, for example,

> > exhibited the behaviour predicted by today's asset pricing 

> > models, long

> > before the models were created.

> > 

> > If markets were efficient in the past, before we had spreadsheets,

> > mechanical calculators or even the telegraph to communicate 

> > information

> > rapidly, can somebody PLEASE explain to me how we can 

> > POSSIBLY think that

> > markets are now inefficient, and are unable to accurately 

> > reflect all the

> > available information about a share price?

> > 

> > bon weekend, tout le monde...

> > Sean

> > 

> > 

> > >...and maybe the stock markets are finally getting wise to market

> > >capitalisations without any real revenues:

> > >

> > >http://www.wired.com/news/news/business/story/20888.html

> > >

> > >At 10:01 21/07/99 +0100, azeem azhar, lists wrote:

> > >>Actually, while we've all gone loopy loop about Freeserve, 

> > I'm surprised

> > >>no-one else is talking about the other overpriced stocks:

> > >>

> > >>The Exchange

> > >>

> > >>QXL

> > >>

> > >>Any takers for these too?

> > >>a

> > >>

> > >>

> > >>azeem azhar 			| www 

> http://azeem.azhar.co.uk/ (*)

> >>tel 07958 544 593 		| icq 315460

> >>fax 0207 691 0464		| pgp http://azeem.azhar.co.uk/pgp/

> >>

> >>* downdated

> >

> >Toodle Pip

> >

> >Sam

> >-----------------------------------------------------

> > Chinwag - http://www.chinwag.com

> 

> =============================================================

>

Sean Phelan seanmultimap [dot] com http://www.multimap.com

> phone (within UK): 0171 433 0460      fax (UK): 0171 209 5194

> phone (Int'l):  +44 171 433 0460      fax:   +44 171 209 5194


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