>>Look at the trading and what the talking heads, print journalists and analysts are saying. That's who the public listens too, not us.
Very good point, Bob. However, you're missing the fact that those people have a broader frame of reference than the bears here have. I've personally been to three or four Yahoo-management financial presentations. If you bears had the chance to see them, then mix it up with analysts and fund managers who are close to the company and the industry, I believe your feelings would be much more positive about Yahoo's prospects.
Valuation is always a worry with this stock. Owning Yahoo requires a mentality similar to News Corp's Rupert Murdoch. What you pay to own an important franchise isn't as important as getting in early. The key is that the property must qualify as an important franchise.
If Rupert Murdoch could buy Yahoo today for $4 billion, he'd probably do it.
In the Fall, 1995, I saw my first presentation by Tom Siebel of Siebel Systems. The story blew my mind. I remember leaving the crowded room afterwards and saying to a friend, "Yeah, and the forward P/E is only twice Netscape's!"
A grey-haired fund manager turned back at me and said squarely, "It doesn't matter. This is only 1995, and the estimates are low."
He was right. |
