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

To: Michael Collings who wrote (7991)	3/8/1998 1:33:00 PM
From: TheBigB	Read Replies (1) \| Respond to of 27307

Michael : your analysis sounds quite balanced. I think that the run up on the day after the INTC announcement also could use some analysis. I think that most likely it was caused by some hedge funds deciding to go short at 68, 69 and then finding a lot of buying and hence covering their shorts quickly. This created a huge upward momentum. and more mo-mo studs like Craig jumped in. Now the unknown here is whether the buying on that day was caused by some fund manager deciding to show support by buying a couple of hundred thousand shares since (s)he had not fully gotten rid of the stock of shares that they had and built up a short position yet OR was it caused by someone like William Harmond who decided that this was a good buy at that price. If I went long at 76, I would be looking to unload on Monday since that would be a very quick profit and no matter how high YHOO goes, it will eventually test some lows in the days ahead. The question then is : How can you conclude that the squeeze is over ? The one disturbing thing is that YHOO traded at 80 7/8 (the ASK price) after close on Friday. (Of course - that's no indication since on the day INTC announced YHOO traded at 69 after hours only to bounce back ferociously). Now - another question : Who are these large institutions borrowing from ? If you want to go short on - say 100K shares - who do you borrow from ? I'd say - the likely candidates are other institutions. So - there are other institutions who believe that it is worth keeping YHOO on the books for some more time. Or do you think that the vat majority of institutional shares have been dumped ? The really interesting thing is April Expirations. One way to get rid of excess shares is to simply sell deep in the money calls. The March expiration sceanrios have been changing very fast and it's difficult tos ay unless we see open interest after friday trading (which will be available after Midnight EST) if the pain point is 70 or 65. Before friday : it was 65 but only slightly. However, the April Pain point is VERY clealrly way down : more like 50 than 70. Of course that can change - but I haven't seen very much trading in April options. Finally : Please can you point me at the news report about Internet Advertising in January and December. I certainly know of one anecdotal incident where a product group in a company decided to stop internet ad spending on Yahoo between early Jan and early APril since the first quarter is usually very slow for them. However, remember that deals like the one with Egghead.Com probably bring in lump sums of money. Another aspect is that ad spending by financial sites (which I assume are next only to Porn) has really shot up on specialized sites like thestreet.com and SI etc. Is this hurting YHOO at all ?

To: Michael Collings who wrote (7991)	3/8/1998 1:45:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

>>I assume they will count those ads as "revenue" on their first quarter report. Of course it will be expensed out on the other side, but the results will be to show they have continued revenue growth No.

To: Michael Collings who wrote (7991)	3/8/1998 1:59:00 PM
From: Bill Harmond	Read Replies (3) \| Respond to of 27307

Your analysis is quite extensive but I think it boils down to the fact that fundamental demand is stronger than supply. Yahoo couldn't be at 80 without real demand, and the increase in institutional holdings shows that it's far more than technical demand. A consensus is building among institutions that Yahoo has taken the category. I think the best strategy is to play Yahoo long, hold it and buy a little more here and there on weakness. I'm sure there will be plenty of 20-30% and a (very) few 40-50% corrections along the way. There will also be legs in this stock when it doubles and triples.