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: Tom Hua who wrote (323)	1/28/1997 9:52:00 PM
From: Ravi Dronamraju	of 27307

okay... take a look at YHOO's price all along the last Q of 96... the stock has traded between 18-24 range... the last yr of sales at that time were around $12.5 mil. 1996 Fiscal.... $19Mil 1996 Dec Q .... -8.5mil 1995 Dec Q .... 1mil trailing 1 yr sales ... 12.5mil ( aprrx. as of sep 96 thru dec 96) at 26 mil shares.. outstanding sales/share are 0.481 and thus a lower end of p/s ratio 37.4 and a higher end of p/s ratio 49.9 now coming back to the present day... sales/share = 0.731 so a low end price of 0.731 37.4 = 27.33 and a hi end price of 0.731 49.9 = 36.47 a mean price of the hi +low lands me around 31-32... Now are those p/s ratios ( sustained for the last Q ) justified ? I dont know.. All I know is that the market found a suitable support level at those p/s ratios for sufficient time. Good reason for me to believe that this current range will ( 27 -36) will stay for this Q pending any surprise news.. Will they guys who bought at 18 take profit at 36? they sure may.. but I am sure there are enough buyers for YHOO in the market.. because the price valuation is still in line with sales. About Institutional investors--- I rarely saw institutional investors getting in and bailing out in 3-4 weeks. The most usual run-ups pushed by institutional buying last for 6-9 mnths.. thats what I saw. I might not have seen enough.. but I think thats what I saw. now when they leave it might crash over nite.. like cascade. but so far I think YHOO has not reached valuations that high.. when (and if) Yahoo reaches 50 in the 2 weeks.. I will probably join your ranks.. but till then.. happy shorting.. R

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