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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Roger A. Babb who wrote (15233)11/9/1998 8:08:00 PM
From: larry  Read Replies (2) of 18691
 
Roger,

I guess that we have discusses in the past about the YHOO! situation. Well, everything goes for YHOO!. Everyone believes that YHOO! is going to dominate the internet and everyone believes that the top internet company is going to be the best place to go. IF YHOO! delivers, I won't be surprised to see that the issue commands a market cap of 100 billion within the next 3-5 years. I think that YHOO! is a much better investment than the likes of DELL & CSCO, which I am currently long heavily. Heck, even the short interest bodes well for YHOO!. I just can't understand why people will short a market favorite when the short interest is just enormous.

Only four things can crash YHOO!: 1) another company devises a portal that seriously challenges the king status of YHOO! (Softie?!); 2) short interest goes down 90%; 3) market crashes and DOW goes down to test new lows; 4) YHOO! misses earnings (NO WAY! These anal-ysts, although stupid, are pretty shrewd and know very well about the game on the Street. They are setting the earning bar so ridiculously low that even Forrest Gump can tell in one second that YHOO! is going to beat the first calls handily). In the near future, I don't see any of these happening and that's why YHOO! is going up higher.

I mentioned earlier that YHOO! should form a near term top at around 165. But in 3 months, this baby is gonna test 200 and another split should be announced when they announce earnings for next quarter.
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