CABL Forum - Re: Hmmm........

"One possible cause for the collapse of the NASDAQ (and all dotcoms that collapsed) was the massive, multi-billion dollar sell orders for major bellwether high tech stocks (Cisco, IBM, Dell, etc.) that happened by chance to be processed simultaneously on the Monday morning following the March 10 weekend.[citation needed] This selling resulted in the NASDAQ opening roughly four percentage points lower on Monday March 13 from 5,038 to 4,879—the greatest percentage 'pre-market' selloff for the entire year.

The massive initial batch of sell orders processed on Monday, March 13 triggered a chain reaction of selling that fed on itself as investors, funds, and institutions liquidated positions.[citation needed] In just six days the NASDAQ had lost nearly nine percent, falling from roughly 5,050 on March 10 to 4,580 on March 15."

"The bursting of the bubble may also have been related to the poor results of Internet retailers following the 1999 Christmas season.[citation needed] This was the first unequivocal and public evidence that the "Get Rich Quick" Internet strategy was flawed for most companies. These retailers' results were made public in March when annual and quarterly reports of public firms were released.[citation needed]

Some of the big business houses totally ignored the fundamentals and presumed that in the name of internet or new economy anything can be sold online and one can become a market leader overnight. One of the classic examples of this approach was that companies attempted to use a cookie cutter model as they tried to spread their wings on the global map. Many companies simply ignored the basic rules of due diligence of potential target market and customer base with respect to local market and needs. If an idea was successful in USA, it was assumed to be successful in other parts of the world, which did not turn out to be correct at the end of the day."

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Re: Hmmm........