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To: craig crawford who wrote (7824)	3/5/1998 1:20:00 AM
From: TheBigB	Respond to of 27307

craig : all the shorts who would have covered have been massacred. The only shorts that remain are either recent shorts or ones like me who are in the red and will not buy back until the stock slides 10 points or so. Of course this does not mean that there will indeed be a slide across the whole market - esp since the corelation between semis and internet stocks is unclear. What is certain though is that the mo-mo go-go mood has ended quite abruptly. If I was a mo-mo player, I would look for a quick exit with some profit. The danger for YHOO is that the general slowdown in teh economy may indeed hurt advertising and make it miss earnings and revenues in July, Oct or January. Of course, the whole issue is moot considering that YHOO is not based on fundamentals in the first place. It is either based on momentum or on unrealistic expectations about the inevitablity of it's growth two or three years out when the market/business conditions for a volatile startup like YHOO are unpredictable. One thing is for sure, it can hinge a lot on what Fidelity has been doing in the past two or three days. If they havr mostly exited then this is their chance to sell the rest and go short as qucikly as possible. If they haven't exited and what's more if they share the feelings expressed by Craig and Will Harmond about this stock, I expect they will chip inw ith some support for it after it dips somewhat. Also, those pension funds run by money managers who move ina herd may take this as a signal to accumulate. One final thing to convince you that the mo-mo spell has been broken : S Korea is down 7%. That's a dive that should moderate our markets. In either case, the short squeeze has been broken. Don't expect the stock to nudge 75 again in the next month or two unless YHOO reports 10 cents per share this quarter. YHOO's biggest problem in doing this is that it actually has 500 employees now. This means that if it costs $100K per employeee per year, their manpower expenses alone are 50 Million $ a year. That is a fixed cost. This translates to $13 Million a quarter. After paying for it's deals with netscape and sundry expenses - it is now looking at upwards of $20 Million in fixed costs. So it has little latitude in reducing expenses. It really - really needs the same revenues that it had in the last quarter in order to get anywhere close to making those 2 Million$ in projected profits for this quarter. However, all of this is an analysis of fundamentals : who cares about that :-)

To: craig crawford who wrote (7824)	3/5/1998 9:15:00 AM
From: Oeconomicus	Read Replies (3) \| Respond to of 27307

Craig, another respondent already noted that many shorts were squeezed out just a few days ago, so I'll not pound that table. Go ahead and buy the dip. By the time you figure out it's not working this time, the rest of the dipsters will be adding to the selling pressure, far outweighing what little short covering comes to pass. How low are you willing to go? Will you still be "comfortable holding YHOO" at 60? 50? 40? Will you keep averaging down all the way to a very reasonable ten price-to-sales or a fifty forward PE? Where would that be, mid-teens? How low Craig?