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Strategies & Market Trends : Yahoo and other bubbles...when will they burst?
YHOO 52.580.0%Jun 26 5:00 PM EST

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To: JB2 who wrote (5)1/31/1999 12:56:00 PM
From: marion (Hijacked)  Read Replies (1) of 139
 
<<According to Harry Dent, the demographic oriented optimist's economist, the bust wil come around 2010 when the last of the boomers begin to retire.>>

I don't believe that the stock market is a bubble, just companies like Yahoo.

<< Until then you can count on a solid decade of merging and submerging and constant internet consolidating.>>

It is this "merging and consolidation" that may be the undoing. It is an incorrect assumption that just because they are buying companies with stock, this isn't like real money. On the financial statements it's real.
For companies to buy other internet companies they are going to be paying too much.
I know people like to say "you can't value the internets"... but come accounting time, they are in fact valued. Any amounts paid over the tangible worth are considered "goodwill" and will have to be written off.

I could be wrong about how Yahoo will account for the GeoCities deal.
I am going to try and find another company where they acquired a company that was so much higher than its tangible worth, and see how they accounted for it.
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