>>So what should we do ? Wait till numbers become meaningful and THEN jump in to invest ?<<
This might not be a bad strategy. Someday, a $200-$300 correction might occur and it would be better to invest after the event rather than before it. At that point the numbers would have become meaningful.
>>Or can we participate in what is this century's greatest communication paradigm yet...hoping, believing the fundamentals WILL catch up someday if it is to survive ?<<
You may be right here. But tell me, what type of earnings do you feel will develop over the next several years from this paradigm shift? Will Yahoo earn $15-$20 per by the year 2002? I think not. And if they begin heading in that direction, might the likes of Microsoft, GE/NBC (Snap), Disney/ABC (Go Network), AOL/Netscape and others with much more capital put it to Yahoo? And what about other competitors who have not yet even arrived in this barrierless marketplace?
>>Did you notice even the likes of INTL, IBM & MSFT are forced to give in to investor psychology in the current market environment ?<<
But all their P/E's are just a tad under 1500.
My point here is that fundamentally what is going on makes no sense whatsoever. Nobody on this or any board has provided me with a valid argument against my statements. So what does that leave? Yes, hype and mania. Which granted has provided some wonderful short term gains. But unless Yahoo steps to the plate with some truly outstanding earnings gains, this will all come crumbling down at some point in the future. Argue all you want about hype, mania and market sentiment driving this stock. I will not disagree. But when you speak of paradigm shifts and the earnings they will ultimately develop, share some numbers with us. Give us some idea of the fundamentals Yahoo will develop to justify these outlandish values. Otherwise all I'm hearing is hype, platitudes and mania.
Dave |
