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.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (5745)	3/30/1998 2:56:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 18691

What does Rolls Royce have to do with AOL or YHOO?

To: Pancho Villa who wrote (5745)	3/30/1998 4:07:00 PM
From: Funda	Read Replies (3) \| Respond to of 18691

Where the Yahoo valuation is coming from Where does the valuation of Yahoo come from? Take a look at the ISDEX archives available on quote.yahoo.com . They have a valuation model based on the number of unique users visiting these web sites and have made a reasonable estimate about the amount of money that companies advertising on Yahoo might want to spend. It doesn't look that crazy. This is a new business and is just ramping up - so traditional measures of growth will fail to tell the real story (assuming there is one). I wouldn't feel comfortable buying Yahoo at these levels, but I wouldn't feel comfortable shorting it either. I think it is instructive to study the rise and fall of Netscape. NSCP also climbed to astronomical heights and it has taken almost 2 years and major competition from Microsoft to bring their stock price down to a more reasonable level. The same will probably hold for Yahoo. It will take a long time and significant problems for the stock to come back down to earth. And unlike Netscape, Yahoo doesn't have Microsoft or anybody else breathing down its neck. If you are short Yahoo, I wish you good health. Funda