Pegasus finds last week's 15% loss of average Internet stocks,as well as Pegasus INTDEX's drop of 6.4% and NASDAQ's 8.5% drop forthe week, are symptomatic of a slowing of revenue growth for manyInternet companies. Lower tier companies are reportedly threatenedwith immanent liquidation or takeover. This will trickle toadvertising companies, as only "blue chip" players like Yahoo andAOL see marketing dollars from those e-businesses left standing,spelling disaster for smaller sites.

Pegasus predicts an increase of acquisitions and mergers.Layoffs will likely follow and office space would be vacated. Thisreport follows on the heels of predictions from early last week atthe annual NAREIT convention that a recession is looming. Panelistsall agreed on the recession forecast and said the commercial realestate industry would survive by avoiding the disastrous overlybold speculative development of the 1980s.

Interestingly, McGraw Hill recently released Pegasus presidentand founder Greg Kyle's book, The 100 Best Internet Stocks to Own.Kyle named Priceline.com one of the top 10 picks. The impact ofWilliam Shatner's promotions and diverse offerings, according toKyle, made it one to own. Now, as reported Friday on GlobeSt.com byWestchester reporter John Jordan, Priceline.com is closing someoperations and its stock value is falling. This disparitydemonstrates that no one knows with certainty what is yet tobe.