Matei Mihalca, Merrill Lynch's point-man in the 'land grab' for Asian Internet companies earlier this year, has issued his most bearish outlook on the sector yet.
The pain for the region's Internet stocks, which have been knocked from pillar to post for nine months, was far from over, Mr Mihalca warned in a report.
'To sum up, our outlook for the Asian Internet [sector] is bleak for now,' wrote Mr Mihalca, who heads Merrill's regional Internet research team.
'We have no doubt that the leading Internet companies will survive. The question is exactly in what form and whether that survival process will lead to significant share price appreciation within a reasonable time-frame.
'At this point in time, [the] chances don't look good, but we'll keep you updated.'
Mr Mihalca also admitted even the best among the young and largely unprofitable firms in the sector did not measure up well to traditional firms which had earnings track records.