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

To: Bill Wexler who wrote (3130)	11/23/1997 2:39:00 AM
From: Rational	Read Replies (1) \| Respond to of 27307

Bill: You sound sarcastic by saying: Why not just buy $1 billion worth of Yahoo stock? . But, the Korean government has indeed done it. How? They are bailing out banks that have lent to Softbank that has bought YHOO shares. Softbank may have bought at $25, now that investment is doubled on paper. Magic!! YHOO is a good company and will thrive. But the stock price is too high. I have been searching for a trigger point for unraveling of this price. My reasoning is this: Korean banks are forced to increase their capital ratios by decreasing loans in their portfolio. They have to call their loans, especially, from companies like Softbank that have very high leverage ratios. Softbank will have to sell a large part of its 19 million YHOO shares. A block sell order of 250,000 will instantly drive the YHOO price down by 50%, given the existing market jitters, IMO. All the paper profit of Softbank will vanish, IMHO. Your sarcasm will remain a sarcasm, although I first tried to rationalize. <VBG> Sankar