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To: Sarmad Y. Hermiz who wrote (109504)10/3/2000 10:21:33 PM
From: KeepItSimple  Read Replies (2) | Respond to of 164684
 
>What's the difference between Yahoo's business model at $250/sh and
>at $85/sh? Nothing that I can see.

Well, 99.999% of public internet companies to date share the same business model: keep floating stock long enough to keep the company running, and simultaneously dump as many insider shares as you've got the chutzpah to dump.

The "difference" is, if your stock gets WAY down in the crapper, nobody wants to buy your notes anymore. No more fat juicy offshore offerings that are snapped up by the world's elite drug cartel members. Nope- suddenly the company (and i use that term facetiously) has to try and make money from operations! So xyzscam.com at $5 bucks a share and xyzscam.com at $50 bucks a share have COMPLETELY different businesses plans!

As we all know, there is only one way an internet company can make money from operations:

Include interest and investment income in the "operations" pro-forma column! Suddenly a two bit company that had the luck to raise 500 mil in a secondary offering is seen as a profitable powerhouse! (ahem, cough, yahoo!)

This is going to be a fun month. I see even the motley fool has started recommending shorting stocks- i guess when your model portfolios collapse you've gotta try something!