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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: gc who wrote (19272)1/27/1999 9:52:00 PM
From: Dave Mansfield  Read Replies (3) of 27307
 
>>Don't miss out! I heard the "overvalued" argument years ago and yet how much the share price has since increased? Same story for many great stocks like msft, intc, dell..etc.<<

GC, I hear your argument over and over again. Let's take into account MSFT. Microsoft went public in 1986. I have been able to find data only back to 1989 so far, but three years after MSFT went public it traded in a P/E range of a low of 15 and a high of 29. So to compare Yahoo to MSFT, Yahoo would need to trade in a P/E range of 15 to 29. That means Yahoo has but a few months (it became public in 1996) to trade in a P/E range of 15 to 29 to be as comparably overvalued as MSFT was in a similar time in it's early stages. Right? So how do you figure Yahoo will be trading at a P/E of less than 30 anytime this year? If you don't think that will happen, then you make a bad analogy with MSFT. I bet when I do the same with Dell and Intel, I'll find the same thing. No company has been as overvalued as Yahoo is in this stage of their existence. Look it up. Prove me wrong.

Dave
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