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: Michael Collings who wrote (7642)	2/26/1998 7:14:00 PM
From: Rational	Read Replies (2) \| Respond to of 27307

A critical point in time is April 1, 1998 when Japan will enforce its new accounting system in which every company must present consolidated P/L and B/L statements. Thereafter, Softbank cannot hide losses from trading in the stock to prop up the price with a view to increasing profits due to stock price appreciation. Parent Softbank will report the 500%+ gain in Yahoo! stock holdings as profit to its shareholders for the 1997 fiscal year ending March 31. I continue to believe that a Softbank subsidiary has been trading on Yahoo! stock to nudge the price of Yahoo! whenever it has fallen. Under the current Japanese law, a Softbank trading subsidiary can hide its losses; i.e., not pay any dividend (from losses!) to its parent and the parent does not need to consolidate its income (this is a main reason for the collapse of many Japanese and Korean banks and other firms). This nudging would have collapsed soon had the WSJ hype not surfaced today. I believe institutional investors were concerned about the falling Yahoo! price and so wanted to give a sufficient push (buy coaxing a WSJ columnist) before they exited; of course, the internet tax relief announcement helped. Disclaimer: THIS IS MY OPINION AND IS NOT FOR INVESTMENT DECISION MAKING BY OTHERS