Gartner welcomes dotcom demise
- — 19 April, 2000 16:43
McCabe welcomed Monday's sharemarket crash as a "a good thing". He said the share price fall which hit many "overpriced" dotcoms, such as Solution 6 and Melbourne IT, had been long awaited.
Solution 6 fell on Monday below the $6 mark -- less than one-third of the dizzying heights of $18 that shareholders enjoyed last year. However, Solution 6's marketing manager, Rushenka Perera, said the one-quarter Telstra-owned accounting software giant remained optimistic about its already rebounding share price. Solution 6 looked forward to a "turnover" of "fresh shareholders", Perera said.
Meanwhile, Melbourne IT's chairman, Rob Stuart, agreed with McCabe's claims that Monday's bloodbath was a "good thing" and that the market had been holding many overpriced stocks.
McCabe pointed out that some listed technology companies from the "old economy" suffered unfairly because investors had confused those businesses with the more-speculative dotcoms. Stuart contended that his own company, which more than halved its $16.37 peak, had suffered in this way.
Stuart argued that his company's revenues had increased by more than 100 per cent year-on-year, and was on track to grow almost a further 100 per cent this financial year. "But it was a healthy correction," he said. "Better it happened now then later."
Meanwhile, ISP Eisa, whose share price dipped by more than two-thirds to 93 cents on Monday, issued an ASX release confirming the company was confident it was still "on track" to complete its first round of funding to acquire fellow ISP OzEmail from UUNet "within the timeframe originally envisaged".