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: Bill Harmond who wrote (10344)	4/19/1998 4:35:00 PM
From: JScurci	Read Replies (2) of 27307

Dear William, I respect the passion of your beliefs but are you perhaps as intransigent vis-s-vis your 'sky's the limit' rosy scenario of Yahoo as the bears are with their imminent disaster scenario? I am disappointed that you perhaps do not see the point I am trying to make, and that is simply: Yahoo may very well be a fine company with excellent prospects(let's face it : we'll know for sure with the passage of time - your crystal ball reading notwithstanding) however; there is such a thing as overpaying. You seem to completely rule out this possibility or are you simply saying thay Yahoo is so completely virtuous and perfect that no price is too high a price to pay for it because either its present growth rate and/or future earnings,and cash flow growth are so awesome that in due course such growth will eventually catch up to and exceed not only today's price but any price shy of $200.If that is so, how about articulating the mathematics of your present value analysis. How big is this business within 3 years? (Please let's see some economic justification within 3 years after all Wall St. and especially Yahoo holders are not a patient sort and even sell-side analysts are loathe to publish 3 year estimates.)As Mr. Buffet says, over the long run stocks are "weighing" machines that register the weight of that company's earnings. Surely you must have some fundamental metrics that can show us what "weight" of earnings Yahoo will possess which discounted backward for 3 years gives us something akin to Friday's close plus $80 or so. I am reminded of a phenomenon a few years back when our Japanese friends were so flush with overvalued wampum that they were known while vacationing in Hawaii to walk door-to-door through some of its pricier neighbourhoods ringing doorbells with unsolicited,higher-than-top-dollar bids. Some lucky few homeowners happily obliged by handing over the keys.I'm sure they were all very nice houses that we would have all been happy to live in.But that didn't make them a good investment - still a nice house though.Now William you've told us at length why Yahoo is a fine company,but how can we make money by going long here? Regards, John

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