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

To: fut_trade who wrote (5403)	12/31/1997 4:38:00 PM
From: PanzerGeneral	Read Replies (3) \| Respond to of 27307

Are we all set for the avalanche? Only 5 days away!

To: fut_trade who wrote (5403)	12/31/1997 4:51:00 PM
From: Oeconomicus	Respond to of 27307

Put it this way, he probably knows YHOO will be trading at 500 in 5 to 10 years. Put it this way, Peter - he knows that even at $10 per he's a very rich man. He never counted on it going to $70, could never sell more than a relative few shares at that price anyway (It's only worth $70 at the margin. You can't lose money you never had.), and is probably smart enough to have hedged some of his shares. HNY!! Bob

To: fut_trade who wrote (5403)	12/31/1997 5:01:00 PM
From: PeterGx	Respond to of 27307

<<Put it this way, he probably knows YHOO will be trading at 500 in 5 to 10 years.>> Peter, Peter: Started the New Year's Party a bit to early, haven't we... Happy New 1998 to all

To: fut_trade who wrote (5403)	12/31/1997 5:09:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 27307

Please Peter, you've been reading too much fiction. I say "Show me the money!" BTW, my first month as a daytrader was much more lucrative than I could have imagined. The funny thing is, I haven't traded Yahoo! once since I started going home in cash every night. Go figure. Barb!

To: fut_trade who wrote (5403)	12/31/1997 5:48:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 27307

<< Put it this way, he probably knows YHOO will be trading at 500 in 5 to 10 years. >> You think you could narrow that down a bit? That's a pretty broad timeframe. 5 years or 10? Let's just run those numbers. At $500/share assuming there are STILL only 50 million outstanding you get a market cap of $25 billion. What do you think a good PE will be for YHOO in 5 yrs? Surely they will be bigger so the multiple will have to come down. At 20 times earnings they will need to earn $1.25 billion. At 30 times earnings they will need to earn $833.3 million For a generous PE of 40 they will need to earn $625 million. Let's use the generous PE of 40 because the market likes to be generous to YHOO. $625 million divided by 50 million outstanding means they need to earn 12.50 per share. They are expected to earn 8 cents this year. This year.....Year 1.......Year 2...........Year 3...........Year 4.............Year 5 8 cents.......24 cents.....72 cents......216 cents.......648 cents........1296 cents So to acheive a stock price of 500 in 5 years YHOO will have to triple it's earnings every single year for the next 4 years and then double them in the 5th year. Of course they won't be able to issue any more shares in the process or they will have to more than triple their earnings. Even after doing all of that they would still have a PE of 40 (and I'm sure the market would give them one after a performance like that). How about this scenario? 8 cents.......32 cents......96 cents......288 cents........576 cents.......1152 cents YHOO quadruples it's earnings next year, then triples them for the next 2 years and then doubles them for the last 2 yrs. After all that they would still come up a dollar short so the PE would have to go to above 40 or YHOO would only be at 460. Do you really think this is acheivable? Would you like to drop the 5 years and say that YHOO will be at 500 in 10 years?