Roger, I think the time is ripe to short the overvalued internet search engine stocks. I shorted LCOS in the low 30s, will short YHOO next week (3-for-2 split at COB last Friday). Option trading for YHOO will begin on Tuesday. Of the four publicly traded search engine stocks, SEEK is the least expensive, so I went long last week, just to maintain a balance.
BTW, excerpts from the Sept 1 issue of Barrons:
Take another look at Yahoo! The Internet search company was widely
derided as a joke when it came public last year at 13. Yahoo! rose almost
four points last week to a record 59 1/2, giving it a market value of $1.7
billion. It's expected to earn a dime a share this year, giving it a P/E of about
600. Yahoo!'s competitors, Excite and Lycos, also have hit new highs lately.
Compared with Yahoo!, Coca-Cola is a steal at 57 5/16, 40 times projected
operating profits this year.
Regards,
Tom |
