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To: Randy Ellingson who wrote (86747)	12/9/1999 9:36:00 AM
From: Eric Wells	Read Replies (2) \| Respond to of 164685

The only way someone can say that is if they envision a bright future for Yahoo and want to participate in the long term growth of the company. Randy - I envision a bright future for Yahoo. I just believe it's market cap is too high - way too high. Do you have any revenue or profit projections for Yahoo that can be used to justify Yahoo's current market cap? You see, I don't believe that investors buy stocks like YHOO because they wish to "participate in the long term growth of the company" - because such long term growth is unknown, and subject to a great amount of uncertainty and risk. Investors buy these stocks because they want to make money - if you want to make money, you buy the stocks that are going up, it doesn't matter if the price of the stock has no relation to the business model of the company it represents. If you were to try to relate the stock prices of many of today's popular internet and b2b stocks to the business models of the underlying companies they represent, then you would come to conclusion that many investors that buy these stocks are trading on large amounts of hope and faith and desires to capitalize on the rampant speculation that dominates the market - while ignoring the risk that these companies will, at some point, be valued using historical valuation methods. I'm amazed to see analysts and people on this thread eagerly raising projections for YHOO - analysts have raised the target to 350, and I've read at least one post on this thread with a target of 400. Why raise the target? Not because of any news coming out of Yahoo - but because the stock has gone up so much, and people are hoping for a split - and because YHOO has gone up, well, it's bound to go up more. No one seems to be saying "wait a second, maybe we've gotten ahead of ourselves here - maybe this has gotten a bit too far, and perhaps speculation caused YHOO to more than double in three weeks, and maybe it should give back some - in order to adequately reflect the true business prospects of the company." This is what I am saying - it's gone too far - the price is too high. And I don't believe there is any explanation that you can post on this thread that can justify the current price of YHOO other than rampant speculation by investors. So, I'm putting my money behind my words and shorting YHOO - and at this point, I don't really care if I lose some money doing so - because it at least provides me some satisfaction in knowing that I'm taking a stance against what I see as a very unhealthy level of speculation that has not only gripped our markets, but our society as well. -Eric