April 2000 The Committee for the Adam Smith Internet Bubble Clock has moved the clock seven minutes to midnight. Our "bubble committee" this week considered moving the hands of the the Adam Smith Internet Bubble Clock forward by a minute. Price Waterhouse Coopers, the auditor of DrKoop.com, said that the company was in trouble which meets our test of credit troubles for a highly visible industry leader. DrKoop.com is a well respected site, with millions of hits, and has a famous "brand name." See wsj.com (April 6). Also widely reported in the last few weeks -- CDNow, another industry leader, may run out of cash by next Fall. Against the problems of DrKoop.com and CDNow, we have a drop of about 20 basis points in interest rates. While overall rates have not dropped, the Treasury purchases of benchmark bonds have brought the prices of these bonds down to the lowest point in nearly a year. We felt that the drop in interest rates softened the impact of DrKoop.com, so we chose to leave the clock at seven minutes to midnight. Note: We did not consider the Microsoft ruling because this a legal experience for one company, and it does not have a direct impact on the bubble. Microsoft, while it could be impacted by a bubble burst, is not part of our basket of stocks in the Internet bubble. The name Adam Smith and the logo of Adam Smith are marks Registered in the United States Patent and Trademark Office. Copyright ©2000 Adam Smith Educational Productions Ltd.

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