GST,
Good point regarding YHOO and Japan. Also consider what happens if the Japanese were to buy YHOO shares, after Softbank-NASDAQ tieup is implemented. The last time I checked, Yahoo (Japan), a listed company in Japan, was trading at about $400,000/share. Yes, that is a correct number, not a typo. I don't remember the number of shares outstanding, but I think the market cap might be around $5 billion.
There is still tremendous amount of money flowing around, especially at the institutional/pension level, around in Japan. Even if a tinest minuscle of that flowed into the US internet sector, the internet stocks would easily triple from the current levels. Companies like YHOO AMZN and MSFT are household names in Japan.
If anybody thinks internet stocks have nutty valuations, you haven't seen anything like the Japan's Bubble Economy during the late 1980s - I heard that largely shell companies with loadful of debt could gain $1 billion market cap just by announcing intent to develop a project in Hawaii. Now, THAT is an insane valuation.
Regards, |
