Most analysts are at a loss. Whatever the explanation, there appears to be a lot of money out there ready to be invested into any company that claims to have a connection with the Internet. The result are violent share price movements. AvTel shares are now trading at just over four dollars. Such price movements make it a tricky market to ride.
Chances are that investors find themselves having bought at the wrong moment.
Just after Internet stocks had scaled new heights on the days after Christmas, they fell sharply again - until the next rise. And not every Internet stock is a sure bet, because there are losers too. Many new shares offerings flourish only briefly and soon crash into oblivion. Just like in the 'real world' Internet consumers are opting for strong brands. This suggests that only a few market leaders will survive the fight for space on the computer screens of Internet consumers.