Reliable Internet Stocks for Long-Term Growth

Strategic Insights -

Online investing experts recommend focusing on established companies with significant market capitalization and a proven track record of success. According to Markman, investors can identify reliable Internet stocks by following institutional investors' moves in the market. He suggests companies like Microsoft, Cisco Systems, and Sun Microsystems as strong contenders for long-term growth.

Key Takeaways:

  • Markman identifies Microsoft, CMGI, Broadvision, Real Networks, America Online, and Yahoo! as reliable Internet stocks.
  • He emphasizes that companies with a large market capitalization, such as Cisco Systems, are more likely to succeed in their space.
  • Sun Microsystems, once considered an unreliable company, has improved its P/E multiple and is now a viable investment opportunity.
  • Institutional investors can provide valuable cues for private investors to identify emerging trends and reliable Internet stocks.
  • Companies like Commerce One, which went public at around $60, can be lucrative investments for those who follow established research and trends.
  • Policy Management Systems provides e-commerce systems to the insurance industry and is a notable company in the spotlight.

Statistics:

  • Microsoft's market capitalization is over $200 billion.
  • CMGI's market capitalization is around $50 billion.
  • Cisco Systems' market capitalization is close to $150 billion.
  • Sun Microsystems' market capitalization is approximately $20 billion.
  • The P/E multiple for Sun Microsystems has improved, making it a more attractive investment opportunity.
  • Cisco Systems could overtake General Electric and Microsoft as the largest company by market capitalization in the United States within two years.

Sources:

  • Business Wire, "Online Investing: How to Find the Right Stocks at the Right Time," Dec. 27, 1999
  • Multex.com, "The Internet Analyst(sm)," www.theinternetanalyst.com/individual/991223sections/hotlunch.html
  • Microsoft (Nasdaq: MSFT), http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=msft
  • CMGI (Nasdaq: CMGI), http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=cmgi
  • Broadvision (Nasdaq: BVSN), http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=bvsn