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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: The_Guru_00 who wrote (19179)1/26/1999 10:02:00 PM
From: saju chacko  Read Replies (1) of 27307
 
errrr.... it's in my nature to butt in.... and offer MY OPINION...

i have no position in any stock.... not for the last 4 months... so i'm less biased than i used to be...

i think there is a very fundamental problem with the current price of YHOO... there is nothing more for me to say other than...

look at the current price and multiply it by the number of shares outstanding...

now take this number and do a geometric extrapolation of the current earnings... please feel free to assume that market share and the total market increases at a reasonable rate set by you... make any other assumptions that you feel are necessary...

at what year will YHOO's p/e ratio be 100?

when you get an answer please post a reply and tell me if that is just a little bit too long...

cuz before that the current 'Sky's the Limit!' poker game might be over....

-- commit;

also another way to view the current valuation of YHOO is too look at the stock price ... what is it? if you divide it by 4 what number do you get? is that number too high/ too low for a growing company? what is a more investor friendly number for a stock's share price? 40? 50? what number do you have to divide the current stock price by to get 40 or 50? i think the answer will range between 8 and 10... so that means at least an 8:1 stock split for YHOO...

does that sound too extreme for you? is there another option for the stock to be priced reasonably? multiple (i.e. at least four 2:1) splits over the next couple years?

do you fear that you don't have a couple years to wait for this stock to be priced reasonably? the price might just become lower?

that may be a sign that it is overvalued...

-- commit;

hmmm... there exists the possibility that a stock can fall and rise...

i think YHOO may do one of the two...

-- commit;

also ... feel free to review the charts for IOM(previously, IOMG), USRX(now part of COMS), IDID (now a bb), DELL, MSFT, GE...

where might YHOO's chart fit in?

(these are my thoughts... they very well may be ... INCONSISTENT, CONFUSING, and/or WRONG)

Saju
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