Published
Monday, April 17, 2000 in the Minneapolis Star-Tribune
Net Ticker feels your (market) pain
Eric Wieffering / Star Tribune
The Sixth Sense
According to venture capitalist Ann Winblad, Minnesota's most famous daughter, one of the hottest jokes making its way 'round Silicon Valley borrows a line from the movie ''The Sixth Sense'':
''I see dead companies.'' Winblad's appearance Friday at NetSuds' monthly entrepreneur breakfast drew an audience of more than 500, 30 of whom won a minute at the microphone to tout their company. Winblad's pre-pitch remarks hardly constituted a pep-talk. She warned that most of her ilk were avoiding the the business-to-consumer, or, as she put it, "business to calamity" market. She noted that Estee Lauder's (EL) acquisition of Gloss.com, and Drugstore.com's (DSCM) purchase of Beauty.com means that the remaining 20 or so beauty sites "are dead." Of course, analysts are saying the same thing about Pets.com (IPET), the fourth entry in the crowded online pet supplies market. Hummer Winblad owns 4.7 million shares of IPET, which went public at $11 in February. It closed Friday at $2.63. The liveliest thing about the company is the talking sock that appears in its TV commercials.
Then again, sometimes these companies don't even know they're dead.
Last week was the first time since 1994 that the Nasdaq experienced five consecutive days of losses since Sept. 19-24, 1994, when it lost about 20 points. Last week it lost 1,131.
It's weeks such as the past two that make Net Ticker grateful this is a fantasy portfolio. But while he hasn't lost any real money, Net Ticker feels your pain.
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