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To: GST who wrote (4281)12/19/2000 9:55:38 PM
From: craig crawford  Respond to of 57684
 
But the argument is much different for an internet company like YHOO. They have huge scale. This is not scam-a-zon "sell more bonds" we are talking about. YHOO has such high margin scalability that if it cuts costs even just a little bit, it can have a huge positive impact on earnings.

I like how a lot of analysts are claiming that YHOO is going to warn and that it's going to make the stock trade down to $17 and things like that. Well what if they come out with an announcement that they are doing some lay-offs? The street will probably like that and shorts might rush to cover. Just a possibility...

P.S. I see some real negatives about YHOO as well and I can see why it's plummeting hard. I read that employees at companies like YHOO are demanding more pay in cash and don't want to be paid as much in options. Well I think I low stock price can solve that. At 250, 150, even 50, I could see how workers might not want YHOO options as compensation. If I was to go work for YHOO today I don't think I would mind having a significant portion of my pay in options at these prices. If I was CEO of YHOO and a bunch of my employees started to demand pay in cash, they would be the first to get axed! Kill two birds with one stone. Cut costs and fire all the whiners who want to strap the company for cash when the going gets a little rough!

Tee hee hee...