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To: damniseedemons who wrote (15822)	1/6/1998 9:41:00 AM
From: Justin Banks	Respond to of 24154

Sal - Thanks for the info. -justinb

To: damniseedemons who wrote (15822)	1/6/1998 9:48:00 PM
From: Charles Hughes	Read Replies (1) \| Respond to of 24154

Sal, your figures on Yahoo are the ones they sell the market. If you read their annual report and their 10-Qs as I have, you will see that they are losing money on operations continuously. What they do is they have some money left from the original stock sale and they continue to get interest on that. That offsets their losses and that is where the tiny profit comes from that allows them that wonderful P/E of 500 or whatever it is now. Operations have always bled, but they keep them in line with their interest earnings. Now this has allowed them to take over their category on the Internet, but whether they have in so doing only shown the big boys how to do it or whether they will eventually make some money on ads remains to be seen. The money on the Visa deal made them look really bad. This was the first time they had actually tried to function as entrepreneurs, taking some principal, making a bet and scoring a win based on non-interest income, and they blew it. They were very lucky to get some money back, other wise they would have had to cut back on development, as their interest income would have been less by the 20% or so of assets it initially looked like they would lose. And this disclaimer - I use Yahoo every day, like almost everyone I know. I am less skeptical than I used to be. But I will be a believer when they start making operating profits. I will be an investor when P/E gets back from the moon. Yahoo will have to lose a lot of air before then. Chaz