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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: iceburg who wrote (13377)	12/31/1997 3:18:00 PM
From: craig crawford	Respond to of 29386

YHOO is trading at a price to sales ratio of 70. YHOO's market cap is only 20% less than ASND's but ASND had 21 times more sales than YHOO in the trailing 12 months. Even in the worst quarter of ASND's history they earned twice as much per share as YHOO will earn all year! ASND earned more money per share last year than YHOO is expected to earn in 1999! YHOO is trading at 800 times estimated earnings and almost 600 times annualized earnings. The trouble is most of those earnings are from interest they gained from all the cash they received from the IPO! If YHOO triples it's earnings for the next two years it will still trade at a PE of 60, and that's if the stock price doesn't rise anymore! And if there are no more shares added to the outstanding in the next two years! I hardly doubt that YHOO's will stay at 50 million outstanding for the next 2 yrs. YHOO has a market cap 1/3 larger than NSCP with only 1/10 the sales! At least NSCP is showing consistent profitability aside from interest gains. YHOO has a market cap 8 times larger than CYMI yet CYMI has more than triple the sales! 8 times as much earnings per share! And CYMI is growing like a weed! Wrong sector I guess! Semi-equips are left for dead. AMAT has a market cap 3 1/2 times the size of YHOO but AMAT has almost 100 times as much sales! And AMAT earns more than 10 times as much per share. I could go on and on. YHOO "investors" (speculators if you ask me) will have no tax incentive to hold after today. YHOO may be a good trade on the long side for a ride on the "short squeeze" express, but I would rather buy COMS for a long-term hold before I would buy YHOO. I would buy ANCR at 4 all day long before I would pay 70 times sales for YHOO. (ANCR's trading at less than 7 times sales).