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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (78615)	12/7/1999 7:23:00 PM
From: MythMan	Read Replies (3) \| Respond to of 86076

hell I float in a bowl according to him. roflmao!

To: NickSE who wrote (78615)	12/7/1999 7:58:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 86076

Bill F. "high-flying, inflated garbage." -bg- Yahoo stays strong... The big star of the day continued to be Yahoo. At one point it traded up about 72 points to 352 shortly before the close, where it ended at 346 5/8. This gives Yahoo a market cap of over $90 billion. In the last six days, its market cap has increased more than its entire market cap was as recently as August!! Today was the last day to buy Yahoo before it officially becomes an S&P 500 member, so the enthusiasm will probably start to wane immediately. ..Yahoo's gain proves the point for the umpteenth time that none of this is about investing; it's some cross between a video game and gambling. It also proves how absurd these indexes have become as there is a competition to have the hottest index. Large organizations that must index at some point are going to be left with an index that has nothing in it but a bunch of high-flying, inflated garbage. Once again, today's volume was very chunky. In New York we traded over a billion shares and the Nasdaq traded over 1.5 billion. The advance-decline line was also pathetic, with about twice as many decliners as advancers. Speaking of ridiculous valuations... I haven't mentioned them for a long time because it's been a totally meaningless exercise. Everyone knows scores of absurd valuation stories but I was struck by the fact that when one looks at the combined revenue of Cisco and Microsoft, it's around $35 billion for the last 12 months. And yet the market cap of those two companies is around $850 billion, or about 10 percent of the GDP of the U.S. gross domestic product. It's kind of interesting to take a look at Boeing, a world-class manufacturer (although it's been having some difficulties lately) with only one real competitor. This company has $60 billion in revenues for last 12 months, yet has a $35-billion market cap. So Boeing is a world-class company like Cisco and Microsoft, has revenues 50 percent higher than they do collectively and yet has a valuation that is about 3-4 percent of those two. We can look at a multitude of similar examples, but this one has struck me lately and I thought it would help put things in perspective.