John, all these numbers just look worse than they did in January, yet, the question is can they look even more stretched? It reminds me of a lively discussion we had on this thread , I believe last November, we were discussing whether Yahoo should be shorted at 50 or so. One of our brightest brought Softbank ownership of Yahoo and the absolute necessity for Softbank to dump their Yahoo stock. I felt that "technically unless the stock broke under some (48 I believe) support level, it would be a very dangerous short. Kelly, shorted and bailed out within a week (lucky guy). The stock by all "standard measures" was quite overvalued at $50, it is even more overvalued today at 110. Is it a good short now? Sure it is a better short than it was at 50, but those that shorted at 50 and did not cover, are wiped out. I still would not short Yahoo even at these stratospheric prices. It seems that Softbank decided not to dump any shares (who knows, maybe they have increased their position?)
Yahoo is now capitalized at around $5 Billion (holly Sh***t) and I for one cannot see a scenario within the next five years that will bring their revenues to $5 billion, can anyone?
Zeev |
