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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Think4Yourself who wrote (63903)4/5/2000 4:51:00 PM
From: ItsAllCyclical  Read Replies (1) of 95453
 
(OT) JohnQP - Yahoo is definately overvalued, but probably not as much as some think. Based upon their latest quarter they probably have a forward price/sales ratio around 80 or less. Given their potential aliances, the fact that net advertising is still in it's infancy, and they still haven't leveraged much of their brand or their site it probably is worth 20-40 billion in market cap. That said it's still overvalued by at least a factor of 2-3.

I don't think you can look at the earnings of say .40-.50 cents and give it a PE of 50 and say 25-35 is fair value.

Shockingly, Yahoo is less overvalued than quite a few techs and internets if you ask me. They are not in danger of running out of cash anytime soon. That specter faces quite a few others.

If Yahoo ever did trade back to 20 bil in market cap I would definately be buying. So it's not too surprising it remains overvalued.
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