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To: pz who wrote (47668)	4/10/2003 12:00:29 PM
From: Larry S.	Respond to of 53068

Interesting, KFT (Kraft Foods) down sharply, while MO holding strong in down market. Paul, i agree completely with you analysis of YHOO's growth potential. how's the oil and gas activity in texas? larry

To: pz who wrote (47668)	4/10/2003 12:05:04 PM
From: Kelvin Taylor	Respond to of 53068

Hey Paul, I think you make a very good point. YHOO clearly has potential for growth going forward especially with the preminum paid services the company has installed. Some things people pay for what they use others things like messenger software no. It's too buggy still. How much should one pay for the growth of earnings? The stock has more than double since September 2002. 14 brokers cover the stock and the high price target is $30 the low $10 with the median about $22, just below where the stock is now. Is the current price reflective of the growth prospects say over the next year or so? If true then the price is already reach a fair valuation. If not then its undervalued. I think the stock is too pricey, but the market may give it a higher price if other stocks don't look have the same or greater likelyhood of growth.

To: pz who wrote (47668)	4/10/2003 12:37:55 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

Paul, The cough and cold market is estimated at $3 billion and the allergy market isn't far behind. I believe the estimate is $2.5 billion. I don't see how you can conclude that sales of $23.5 million is "close to the point of market saturation" given those market sizes. Regardless, and while I don't want to belittle the importance of Matrixx's current products, the company's big growth will come from continual product development. Isn't that the case with most companies? If you exclude the gum business, which they sold to Wrigley, Matrixx has expanded their product line from one product to seven products, with most of it coming last year. They said that they plan to release at least two new products this year, and perhaps at least one of them will be outside the cough and cold market. The company said that they are on target to increase sales at least 30% this year, which would result in an 85% increase in earnings based on their other guidance. I'd hardly call that a lack of growth potential. If a company earns $1.50 per share over twelve months, does it matter if they do it by earning 50 cents in Q1, losing 10 cents in Q2, losing 10 cents in Q3, and earning $1.20 in Q4? Many retailers earn most of their money in the fourth quarter too, but that never stopped anyone from investing in them. Despite that, the seasonality in Matrixx's results will change when they diversify their product line. The bottom line is that both Yahoo and Matrixx have growth potential. The question is the degree of growth and how much you pay for that growth. I'd rather pay 2.5 times sales for 85% growth than 15 times sales for 36% growth.