Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Ploni who wrote (5605)	1/4/1998 11:28:00 AM
From: Rational	of 27307

Charles: I have always believed and continue to believe that Yahoo! is a bubble stock driven by momentum. The website for Yahoo!Finance looks very useful and organized enough to impress some fund managers like Vinik to play the momentum. I also believe (but have no facts to support) that Softbank has helped in keeping up the momentum because (I have facts to support that) increases in value of stock holdings of a Japanese company are treated as profits. Japan allows "ghost" subsidiaries to make such trades. Such subsidiaries can trade without infringing the US SEC rules. I stress, though, that I do not know if Softbank is trading through a subsidiary. I believe that the Yahoo! bubble will eventually crash. Yahoo! may have already started breaking the momentum. I believe that the huge volumes on April 40 and July 45 calls were sold by some big player at substantial discounts; this must be to force the broker who bought the calls to hedge his risk because such large call sell orders must have given a pause to the broker (who had to buy these calls) to short the stock and not take a risk by hoping that the momentum will go on. I have also seen that the call option premium+strike for all contracts are very close to the current price -- this can happen if the market expects a secular decline in the stock price. Call prices have started going down and put prices have begun going up. There is also the Hotmail acquisition by MSFT and new rankings on Financial websites with MSFT as #1. That said, I no longer disclose my investment positions. My posts have always been independent of my investments. Did you short earlier when I sounded bullish to you? I hope you did not lose. Are you planning to buy Yahoo! now, given that I sound bearish to you? I wish you a happy trading either way. Sankar * OT ** One of the days I was in CTYS, it hit a low of 8 1/2 and rebounded. I chose to sell CTYS soon reading the SEC filing about issuance of new shares for convertible preferred stockholders; well ahead of the requirement. That day I talked to the CFO who sounded nervous; not as ebullient as when I had first talked to him. The following day, I sold my stock.

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