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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Roger A. Babb who wrote (4938)8/25/1997 10:08:00 PM
From: Mengistu ejigu   of 9285
 
Hello Roger

What do you think of YAHOO?

I think YAHOO is overbought at this level.

see the following article taken from Fortune.

anyone buying YAHOO stock at its current
price, which values the
company at roughly 120
times next year's
projected earnings, has
to believe it is nearly
bulletproof. That makes
CEO Tim Koogle
nervous. "I take nothing
for granted," he repeats
in interviews like a
mantra. Especially the
competition: Search
engine Excite has a
powerful ally in America
Online. A popular
technology site called
C/Net plans to launch a
search service later this
year. Netscape and
Microsoft, with strong
positions in the browser
and desktop businesses,
may emerge as the most
formidable competitors of
all--the latest versions of
Web browsers offered by
the two companies have
features that overlap with
search engines. Then
there's the challenge of
building a company in
uncharted terrain, where
costly missteps like the
nixed Visa venture are
inevitable. It remains to
be seen how much
Yahoo's defiance of
gravity has in common
with the extended flight of
a hot-air balloon.

Good Luck,

EJ
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