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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: EACarl who wrote (26278)1/11/2001 3:02:32 PM
From: sea_biscuit  Read Replies (1) of 27307
 
I think that this will not only go down to 4, but it can go a lot lower than that. Recall that a lot of YHOO's earnings came from investment income, so much so that the SEC wanted to categorize it as a mutual fund! Those gains will go away completely, of course. Then there is the advertising revenue, which looks tremendously shaky right now.

The EPS numbers could easily go below zero within the year, and then YHOO will be valued on the basis of sales. Considering that the number of sales outstanding is more than a half billion, they have to make revenues of half billion in order to have a sales figure of a buck a share. Give it a PSR (price-to-sales ratio) of 1.5 (if you think it is a promising company), and you get a price of $ 1 1/2.

This is an optimistic analysis of course (because we are assuming that the company will survive).
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