A famous economist, Keynes, says that the stock price is the result of a beauty contest! At this moment, Yahoo! looks beautiful because of:
* no Asian contagion,
* its free and useful service,
* no earnings disappointment so far,
* hyper growth, such as 1 - 10 is 1000% increase,
* its focus in mostly the developed world where everything looks rosy and nice like low interest rate, high consumer demand, etc., and
* its ever rising price showing that the important players must know something that the little investors do not know!
What else one needs to buy a stock? Buy, while the quantities last! There will be a January effect too! I do not know what to say of the Analysts. A Goldman Sachs Analyst was suggesting on CNN to stay away from Dell because it was simply a box maker, with no cost of entry into the business, high competition, etc. I wish he commented on Yahoo too!!
Sankar |
