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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: EACarl who wrote (26278)	1/11/2001 12:27:23 AM
From: norm chin	Read Replies (1) \| Respond to of 27307

"...EPS from $.48 to $.38 , a 20% drop, and even at a P/E of 20 (which would be outrageous for negative growth) it would still be a single digit stock. Sales per share less than a MEASLY $2!" This kind of logic truly amazes me. It appears very much that Wall Street analysts use similar type of reasoning to extrapolate when they want to pump or dump securities depending on their agendas. Granted that Y2001 will be negative growth for YHOO. Because Y2001 is a negative growth, does that mean subsequent years will follow a similar trend? Your presentation seems to indicate that you think so but do any of us really know? In the first part of last year, things were looking very peachy for YHOO and overly enthusiastic analysts appeared to assume that it will follow a similar pattern in the foreseeable future and they kept pumping it relentlessly. Now we know how wrong they were. It seems you are doing just the opposite. If you think YHOO is grossly over-valued, do yourself a favor - short it tomorrow. There should be a lot of opportunities to sell short in the mid to low twenties.

To: EACarl who wrote (26278)	1/11/2001 3:02:32 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 27307

I think that this will not only go down to 4, but it can go a lot lower than that. Recall that a lot of YHOO's earnings came from investment income, so much so that the SEC wanted to categorize it as a mutual fund! Those gains will go away completely, of course. Then there is the advertising revenue, which looks tremendously shaky right now. The EPS numbers could easily go below zero within the year, and then YHOO will be valued on the basis of sales. Considering that the number of sales outstanding is more than a half billion, they have to make revenues of half billion in order to have a sales figure of a buck a share. Give it a PSR (price-to-sales ratio) of 1.5 (if you think it is a promising company), and you get a price of $ 1 1/2. This is an optimistic analysis of course (because we are assuming that the company will survive).