Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Mike M who wrote (9800)	4/11/1998 11:08:00 PM
From: Zebra 365	Read Replies (1) of 27307

<<<$5 Billion valuation for a $30M revenue quarter and a great story....Wow! what a racket.>>> Sorry Mike the racket is a little bigger. Fully diluted shares are 53,374,000. At 114 1/2 the market cap of YHOO is $6.1 Billion. William Harmond, you were right about the stock, but please don't talk about the 17 million in free cash flow generation justifying the price of this stock. $6.1 Billion invested in treasury notes at only 4% interest would have generated free cash flow of 61 million dollars for the quarter, three and a half times greater than what YHOO did. To their credit, 25% of YHOO earnings came from investing, not from selling ads or operations. If YHOO were to do a secondary offering and command these prices, they could double the free cash flow by simply buying treasury bonds at 5% with the proceeds from a 19 million share offering. In other words the stock price is so inflated that buying treasury bonds with stock would be a great step up in ROI. Good luck all Zebra

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