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: ItsAllCyclical who wrote (3603)	12/4/1997 10:35:00 PM
From: Bill Wexler	Read Replies (2) \| Respond to of 27307

Is Lucent CRAZY? I just read that there is an ASND buyout rumor. Lucent (LU) wants to offer $35 a share for the company - making the purchase price about $7 billion. This is insane! Why would anyone waste $7 billion for a company like ASND (TTM revenues - about $1.0 billion, TTM earnings - about $170 million before charges related to the Cascade merger), when they can buy the Yahoo web site for a bargain-basement $2.7 billion? Obviously Lucent is a "rear view mirror" investor...they are old-style thinkers who want to buy companies with large revenue/earnings streams and impressive technologies. But us Yahoo longs know better. Earnings and reasonable PSRs are irrelevant to the truly knowledgeable investor. I'd rather put my faith in page views, banner ads, and internet "land grab" metaphors.

To: ItsAllCyclical who wrote (3603)	12/5/1997 1:28:00 AM
From: Bill Harmond	Read Replies (2) \| Respond to of 27307

>>At these levels it's always small buyers. Many mutual funds own the stock for long term purposes, but few if any are adding at these levels. (Just an opinion). You're right. An ascending wedge formation on declining volume is generally bearish. However there is record short interest of 4,000,000 shares to buy at the market above 59, and the float is 6,500,000 shares. This is some potent brew. It could go either way. I'm keeping my Yahoo weight at 7%.