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Happy Girl, I guess I'll never understand your investment philosophy. On one hand you say you are a long term investor in Yahoo, on the other you say fundamentals do not matter. To be a long term investor you have to believe in the long term viability in the company you're invested in. Long term viability means turning a profit and a substantial one at that for a company with a market cap in excess of $20B. (After yesterday and today we're still north of $20B aren't we?) That being the case, fundamentals (i.e. price in relation to sales, earnings, cash flow and such) have to matter. If you're a long term investor that is. Otherwise it's all tulips. And as such, being a long term investor, you have to have targets (other than stock price) for the performance of the company (revenues, earnings, etc.) otherwise you're speculating. Nothing wrong with that, just calling a spade a spade. Bottom line you gotta have an investment style. Maybe more than one. But for each position in each stock, you gotta have a plan, long term or short term. And a long term position involves seeing the company succeed and having benchmarks to measure that success. Short term strategies have to do more with market sentiment. That's what drove the Y2k stocks such as Zitel to the stratosphere, only to crash back down as the fundamentals finally caught back up with them. Fundamentals always return, mark my word, it's just a matter of when. Many refer to Microsoft, they grew into their valuation. Yahoo must also, or fall back into their correct price. |
