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To: dbblg who wrote (88275)	12/21/1999 9:49:00 PM
From: Eric Wells	Read Replies (2) \| Respond to of 164684

Do you really believe that the skills required to differentiate a YHOO from a CYCH, or a CSCO from a CS, are no longer useful? Ganesh - thanks for your post. How do you justify Yahoo's current $105 billion market cap? Do you know of someone who has done the fundamental analysis of Yahoo's business model that would support this market cap at this point in time? You bring up some good stocks for comparison. But you can't deny the fact that there are many profitable growing companies that have had flat stock prices this year - mainly due to the fact that the companies have not found favor with momentum investors. You see many such stocks come and go, that come into favor and go out of favor - TGLO for one as you mention - KTEL or CORL to name two others. It's all pure speculation. Anyone who has ever followed CORL and has some knowledge of the potential for Linux desktop applications (which looks like very little at the moment) would know the company is not likely to have future revenues to justify a quadrupling in valuation based on it's announcement of support for Linux. But momentum investors don't know - they just drive the price up - because they all watch each other - and they know that Linux is hot, and when a company becomes a Linux company it moves up. And then it falls - at least in the case of CORL. But some times it takes awhile for a stock to come back down to earth. And we may be seeing the same phenomenon on a much larger scale with some of the more high-profile stocks, such as YHOO. Certainly every YHOO investor must be thinking about the drop from 220 to 120 earlier this year - and yet the stock continues to go up for no fundamental reason (at least none that I know of). I believe TA is becoming more and more popular - and through it's greater popularity, I believe that TA could quite possibly be undergoing a transformation from a predictive tool to a tool that allows investors to essentially collaborate with one another - to effectively communicate with one another about the direction of a stock and how far a stock will move, without the investors actually communicating directly. You may disagree. But when stock prices rise so far above where even the most optimistic fundamental analysis would place them, I can think of no other reason than momentum. Thanks, -Eric