Saturday, December 20, 2008

This is not Different This Time

Some news plays well in bull markets, some in bear markets.

DIGG is a cool web site - Web 2.0 and all that. Businessweek had comments on the cash burn and prospects of the company and summed up its prospects for a liquidity event with the following:

"Digg CEO Jay Adelson's repeated attempts to sell the company to News Corp., Current Media, and Google, at a valuation of $300 million or more, came to naught because there's no real business there."

No journalist would write that sentence in a tech bull market. It's not true, for one thing, as there are myriad business models which might come out of their biz and existing web traffic. More importantly, though, is that fact that when stocks are up, journalists pander to the gee whiz wow thingy. Stocks are down so the "Yeah, these guys suck" is a much easier sell.
That's a nice looking tiger.

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