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

To: Bill Harmond who wrote (8884)	3/29/1998 1:24:00 AM
From: LoLoLoLita	Read Replies (2) \| Respond to of 27307

William, Well, I disagree that the search/portal wars are over and YHOO has "taken it." XCIT has a better mousetrap, and, who knows, they may approach the PSR of YHOO as the market takes note of this. Let's see--that would be a 200% + gain. In my book, the only thing YHOO has "taken" is an award for most over-priced stock with a market cap bigger than $4 B. I shorted YHOO, and survived to tell the tale. Covered short at a (bearable) loss. Market opens at 4:30 AM local time, and it goes to 3:30 AM when Daylight Time kicks in. Not worth the loss of sleep. Someone here mentioned that if you trade (short, he said) based on fundamentals you have to be very patient, and willing to ride it out if it goes against you. This is a level of patience that Mother Theresa had (rest her soul), but I lack. AOL, YHOO, and AMZN are all at current nose-bleed levels (and climbing!) for a simple reason, a concept usually introduced the very first day of any ECON 101 class: supply and demand. Forget all that garbage about PE and PEG, PSR, ROE, ROI, quick ratio, debt ratio, etc. It doesn't matter a whit! That stuff doesn't set the price! As long as there are more buyers than sellers, these suckers will keep going up. Once that stops, and enough fear sets in, then they'll all fall like rocks. But, nobody can know when that will happen. Imagine you're a fund manager and you keep hearing things like "the internet is infinite" and "unbounded growth" and all that kind of crap, with five billion people on the net someday. (Never mind that only about a billion people now have electricity and telephones). You want some internet in your portfolio. You look for big-market-cap stocks, preferably ones that are going up. Voila, you buy AOL, YHOO, and AMZN. It's a no-brainer. Whenever there's a little bit of selling, nervous shorts step in to prop up the price with their covering. And any rallies turn into spikes from short covering. It's just a big Ponzi scheme, but there's nobody facing jail because the market is just doing what it does naturally: matching up buyers and sellers. Longs bail out to other longs, and ditto for the shorts. Good Luck, I'm outta here! David