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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: Tim Bagwell who wrote (11578)7/1/1998 3:24:00 AM
From: Bill Harmond  Read Replies (2) of 27307
 
>>It's been said by others that management believes the stock is overvalued.

It must be true then.

>>I think it's a reasonable conclusion given the market cap and lack of earnings prospects.

What lack of earnings prospects? Yahoo has been generating free cash flow for a year, and has been posting increasing operating earnings for three quarters. If I recall correctly, operating margins have increased from 5% to 17% during the past three quarters. Yahoo is 15% sold, yet, through last quarter at least, CPM's have been increasing.

Why do you think Yahoo gapped up on record volume April 9, the morning after after Q1 operating results were released, and never closed that gap during the April/May correction? Earnings prospects.
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