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: santhosh mohan who wrote (5754)	1/6/1998 1:18:00 PM
From: Rational	Read Replies (2) \| Respond to of 27307

Santosh: The stuff you posted is very interestingly similar to mine. Thanks. Yahoo! may not have come in the radar screen of MSFT because Yahoo!'s business smells little money. Over last night, investors must have thought deeply about Yahoo! to sell this morning, resulting in a dip. Somebody is obviously buying. Many Japanese companies and banks have lost in real estate and stock trading. They borrow yen at very low interest rate (1.7%), convert that into US$ and buy US stocks -- a reason for yen to be going down. These companies can legally hide their losses under a subsidiary, as long as the subsidiary is registered elsewhere (there is a popular island; I forgot the name). A common Japanese company practice is to siphon only profits as dividends from a subsidiary to the parent company trading in TSE, while keeping the losses of the subsidiary hidden. It is gross because the law does not require parent companies to present consolidated statements; it is a problem in Korea too. Japanese and Korean govts are going to change the law soon. But, in anticipation of such hidden losses, Japanese investors have bid down Softbank's stock. There are reports of losses hidden a Softbank subsidiary. My speculation about Yahoo!'s price: If a Softbank subsidiary is trading; buying on dips and bidding up, this subsidiary can transfer the trading gains as dividend to the parent company as the dividends boost the parent company's profits. But, if there are losses, the subsidiary will not pay dividends to the parent and hide the losses. Furthermore, Yahoo!'s original 13 mil shares are still held within the parent company (Softbank) and any price appreciation is straight profits that Softbank shareholders can see. It is an excellent ponzi game. Of course, there are no facts and I do not want anyone to believe if many of the shorted Yahoo! shares have been accumulating in a Softbank subsidiary, if one exists. Sankar