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

To: Bill Harmond who wrote (3090)	11/22/1997 7:19:00 PM
From: santhosh mohan	Read Replies (2) \| Respond to of 27307

A few points to ponder - 1) Sequoia Capital is a venture capital outfit in Silicon Valley, not some oldest and most respected mutual fund. Last year, in an interview on PBS one of its partners was saying that C-CUBE then at some 50+ dollars was going to be a spectacular investment. What is CUBE at now? 2) SOFTBANK, if I'm not mistaken is a Japanese firm. How do the problems in Japan effect their U.S. investments. 3) Earlier this year Microsoft invested in a Massachusetts outfit called CMG Information Services (CMGI), which in turn is the majority owner of Lycos. Yahoo's deal with Microsoft may be less comforting than you believe.

To: Bill Harmond who wrote (3090)	11/22/1997 9:43:00 PM
From: Eric Klein	Read Replies (2) \| Respond to of 27307

"permanently shaping the Internet landscape" Right. The point that you're missing is that nothing is permanent in this medium. "they have the brand, the circulation, the balance sheet, and the cash flow..." 1. The brand has IMO negligible worth. 2. They DO have the circulation. 3. Their balance sheet is not that strong. They have about $100 million in cash but when that is compared to their market cap, $2+ billion they are small potatoes. 4. Their cash flow is not that great. They have good revenues, but they sell for 40 times sales. The point is not that YHOO is not a good company, it is. It's not that YHOO doesn't have a cool website, it does. The point is that their stock price/market capitalization is ridiculously high because of a lot of momentum investing in the stock. The stock price is too high. It will fall. That is the bottom line. All these momentum stocks follow the same path. They all have some story that propels them, that everyone except the visionaries "just don't get". The stories usually have some element of truth to them, as does the YHOO story. But, it comes down to: The stock price is too high. YHOO is IMHO the most overvalued stock on the market today. At least the most overvalued of those with at least $1 billion market cap.