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: Charles Hughes who wrote (767)	6/18/1997 2:11:00 AM
From: Bill Wexler	of 27307

<<insiders bailing. Is it True? And Why?>> This is interesting...I've been following this stock for the last few months and have begun taking a short postition. The reason insiders are bailing - obviously - is because the stock is ridiculously overpriced relative to its current weak financial condition and realistic earnings prospects over the next 2 or 3 years. It is unlikely they will ever see these price levels again. If someone offered me 1 billion for a business I knew was worth less than 10% of that amount, I'd be packing my bags too!! What really alarmed me about the current wave of selling was the number of insiders all selling at the same time and the number of shares filed relative to the float. Check out www.insidertrader.com and list all the 144s for May. Yahoo had the honor of being the company with the most insiders selling. There was also a bunch of 144s filed in April and June. Over the past two weeks, I've been in touch with a friend of mine who's a broker for Smith Barney. He was tracking the activity in the stock on a Level II screen. He estimates over 80% of the trades were inter-market maker. Today it looked like MMs were shorting into a bunch of suckers buying small blocks. We figure the pump is over and the dump is just about set up. Couple this with all the new inventory coming on the market from the insider selling and I figure we're going to see another quick ride down to the low 20's. At that point I will cover if I confirm that the market makers are starting to rig the bid again (they may think twice next time around since they'll have to gamble on absorbing at least another 1 million shares)...if not, I'll hang on. Regards, Bill P.S. With MMs shorting, it may be difficult to find shares to borrow from this point on.

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