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To: Larry S. who wrote (47703)	4/12/2003 10:44:18 AM
From: DanZ	Read Replies (1) \| Respond to of 53068

"You'd think people would have learned that not paying attention to valuation can be a way to shorten their careers." The valuations of most 'Net issues are far from those reached during the Bubble of 1999 and 2000, when Yahoo traded at 250 and Amazon topped 100. But the price/earnings ratios of Yahoo, eBay and Amazon, which average nearly 75 times projected 2003 profits [and YHOO's price/sales ratio of 15 (Dan's comment)], are very high by the more restrained standards of the current stock market. There are apt to be setbacks ahead for Amazon, Yahoo and eBay, yet their stars and stock prices are burning bright. Too bright, unless they achieve perfection. Gee, where have I heard these comments before? Didn't I say the same thing amid resistance on this thread? I am not short YHOO, EBAY, or AMZN, but definitely would not hold a long position in any of them at their current prices. I do not consider these stocks good long term investments because of their high volatility and inflated valuations. I would invest in a company with a high beta as long as it remained somewhat reasonably valued (FLEX is an example), but YHOO, EBAY, and AMZN go from reasonably priced (sort of) to inflated in a matter of weeks or months. They are trading vehicles, and right now I would not be long any of them.