BLOOMBERG SEES ART CONNECTING THE 'DOT COMS'.(Editorial)(Brief Article)(Statistical Data Included)

Crain's Detroit Business, May, 1999 by Kramer, Mary

Last week, I finally heard an analogy that helped me begin to make sense of the "dot com" stock phenomenon. Don't think of these overnight wonders as stocks, Michael Bloomberg told a luncheon crowd in Southfield. Think of them as works of art. Have you ever been able to analyze why a Cezanne painting sells for $60 million vs.

$30 million? There essentially are two markets, said Bloomberg, whose appearance was co-sponsored by WXYT 1270 AM, Crain's Detroit Business and Roney & Co. Pricing in one has traditional yardsticks, such as price-to- earnings ratios. The other market, whose companies have yet to post a profit, is better analyzed by psychologists or publicists. I don't think he was trying to be funny. Many Internet stocks, including Amazon.com,...

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