Stock Ideas
[ February 8, 2000 ]
Duelling Fools -- Freeserve
The ever-popular Duelling Fools slot is back. The record so far is evenly matched. The Tesco bulls (LSE: TSCO), egged on by TMF Tiger, soundly trounced the bearish stance taken by TMF Essex in the first match. The fact that the shares have subsequently fallen is small moral compensation for Stuart's pyrrhic victory.
Next time the bears did win, when TMF Mayn eloquently talked the Eidos (LSE: EID) share price down by 50%, as well as scoring the most votes. A spirited defence by TMF Eagle, and an illustrious share price history, was no match for the cold logic of valuation.
In the next event, TMF Essex again sides with ursus. This time he takes on the rampaging bullishness of TMF Nigel. The stock in question is Freeserve (LSE: FRE), the company that broke the mould of the ISP model. Since its high-profile IPO last summer at 150p the shares have had a rocky ride, falling to 134p and then rising to 793p. What do these vociferous and over-opinionated Fools make of this share, which for many has been their first foray into the world of Internet shares? Will TMF Nigel's many lovers respond to his challenge by blindly following him into battle like the Light Brigade behind Lord Cardigan, perhaps with the same result? Or will the sweet lyrics of Art Garfunkel lookalike, TMF Essex, bridge the troubled waters between logic and hype?
Before sinking your Foolish teeth into the fight, here is a brief reminder of the rules of engagement. We've set up a Duelling Fools board, and through the links below you can find the "bull" and "bear" posts on the subject. Have a look at both arguments and then vote for one of them using the "Recommend" button.
If you want to stir things up or comment on either side of the argument, use the "Post Reply" feature in the usual way. After a few days the initial TMFs opening the debate will be allowed to come back and fight their corners. The winner will be the side that has the most recommendations on their two posts.
That's the Geneva convention over with, so let's join battle. Steady though, we want a fair and clean fight boys...
"We have been hearing it ever since Freeserve floated was back in August 1999. According to the bears the shares were massively overvalued at 150p. When the shares doubled we heard the bears growling, and the Wise market analysts snarling, "it's overvalued, it's overvalued!" When the shares doubled again we heard the same moans and groans from the bears. Now, six months on, the Freeserve share price is riding high at about 800p, and we still hear the bears snarling away. When will they ever learn?" More...
"The more cynical of the fund managers would call Freeserve a lobster pot stock: easy to get into, almost impossible to get out of, especially in a hurry." More...
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