Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: David R. Doerr who wrote (2350)	11/3/1997 12:15:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Robert is on the right track to be carefully following P/S ratios because they are a great gauge of investment risk...probably the best measure of speculative premium. That said, venture capitalists would never be funding startups if they relied on this measure, and many of the best publicly-traded investments started with astronomical P/S ratios. Anyone investing in a stock with a high P/S ratio better have a good understanding and strong confidence that the company is on the threshold of rapid, sustainable growth. Yahoo had this same P/S ratio when it came public last year, and it has quintupled in the meantime because it created and dominates a new fast-growing industry. Rambus has breakthrough, paradigm-creating technology that is just starting to roll. Siebel, creating a new category of client/server software, has blistering growth and is gaining share. To me their P/S ratios are worth the risk as long as interest rates are OK. IMO, @Home's stock is a couple years ahead of itself. Great service, but its roll-out is limited by MSO's ability to convert their systems and install subscriber equipment.