>>YHOO will follow the same pattern sooooooon!!!!
Because?
NSCP 's price run-up prior to earnings announcement was similar to YHOO 's price run-up.
It just the matter of time when YHOO will come down to earth, crashing!!!!
This article was published by Briefing right after YHOO posted its earnings.
YAHOO! INC (YHOO) 43 1/8 -7/8. After watching short-sellers lose their lunch over the past couple of weeks after being kicked in the stomach by the likes of i2 Technologies (ITWO 47 +4 3/8), America Online (AOL 68 15/16 +1/2), and, of course, Yahoo!, it is difficult for Briefing to say one should have any regard for valuations when it comes to high-profile techs. But now that earnings are out, and it turns out that the company's 3 cents better than expected results of $0.02 a share were about what speculators were betting on, what is next for the stock? One thing that you can count on is that brokerage firms are going to start backing away from the issue, not wanting to get caught under a huge reversal in momentum. The first participant in the stocks undoing was EVEREN Securities, which, though still jittery from the strength of the stock's momentum, downgraded the stock to intermediate-term "market perform" from "outperform." The firm's reason. Valuation. Briefing's opinion: now that the news is out, what could drive the stock materially higher at this level? Momentum and covering by new shorts are the most likely candidates. Given these possibilities, only those possessing deep pockets and a strong stomach, should consider making a short play on this stock in this market. Now we'll add some numbers and then shut-up: the stock is currently trading at 480 times EVEREN's revised fiscal 1997 forecast; 94 times times the current mean view of $0.46 a share for fiscal 1998; long-term growth predicted at 50%. Even if you throw in another 15 cents, or 33%, on top of current 1998 projections, the stock still trades at a lofty 71 times estimates. |
