Blank, you may be right about the fundamentals of the business, but what makes you think bottoms have any more to do with fundamentals than tops do?
The good news is that even 60-Minutes has proclaimed the impending death of most dot-coms and even questioned the viability of YHOO's business. They are, of course, right about the former, but that's not the point. Where were these economic whizzes when this billion dollar company was worth $150 billion? Where were they when AMZN was worth $40 billion and KOOP more than $650 million?
That most dot-coms will die is not news, but that the mainstream press has finally caught on to that reality surely means the bottom for the market can't be far off. Exactly what that means for YHOO, which has shown real revenues and profits, is hard to predict. Valuation is, as we've seen, far from an exact science. Is an 80 or higher PE justified for YHOO? I don't know, but in this market environment, don't bet too much that Mr Market won't decide a 40 or 20 is "fair".
Anyway, since I couldn't pick the top on any of the i-nuts (and lost way too much money trying), I won't claim to have a clue about where the bottom is. I am buying some things that are clearly undervalued on fundamentals (you know - trading below cash - that sort of thing), but certainly no leverage.
Good luck.
Bob |
