Keep up the good work, you are more confusing than Yahoo's stock price. (Speaking of drunks)
As for Yahoo, this stock is another IOM, PRST, ZITL, or any other high flyer ready to fall. YHOO is a fine company, they have a very bright future, but this stock is overpriced. There is no justifiable explanation why this stock is priced so high, only momentum that seems to be slowing of late. I am not long or short, but I will take advantage of this over-valuation before long. The 4% of YHOO held by Institutions is a telling sign in itself. The real pros are steering clear, and insiders are selling. I would agree this company can make some money, but never enough to justify this price. Here is the facts:
PE:893
Growth:70%
PEG:11.91
Look out below, don't know when, but sooner rather than later we will see lower prices!
Go Ky Wildcats
Swimmer
Could it be now?
Net stocks not as hot
By Suzanne Galante
Staff Writer, CNET NEWS.COM
March 19, 1998, 1:15 p.m. PT
Last year's darlings of Wall Street--Internet stocks--now are viewed with less enthusiasm.
Merrill Lynch analyst Lauren Rich Fine today downgraded America Online (AOL) to a "near-term neutral" from "accumulate," keeping it as a "long-term buy."
Bear Stearns yesterday initiated coverage on Yahoo (YHOO) and Excite (XCIT) with "neutral" ratings, although it picked up Lycos (LCOS) as a "buy."
AOL lost almost 5 percent in early trading today, with its stock price at 60-5/8, down from 63-1/2 at yesterday's close. Yahoo's stock, which traded as high as 92-3/8 earlier this month, lost about 2-3/8 in early trading to 84-1/8.
These companies' stocks have been on tremendous runs in recent months, and analysts have said that the prices have been aggressive.
NationsBanc Montgomery Securities analyst Greg Vogal, who has Yahoo rated at "hold," said people are not investing based on Yahoo's expected performance this year or next but are looking ahead to 2002. These stocks have surged, partly because computer hardware companies are somewhat out of favor, he added. "We think Yahoo is an expensive stock," said Vogel. "We believe in the business, but it is expensive."
Vogel has a "buy" rating on AOL, but added, "I wouldn't say it is a cheap stock. On a valuation basis, there isn't a lot of short-term upside." |
