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

To: damniseedemons who wrote (9170)	4/7/1998 2:17:00 AM
From: PAL	Read Replies (1) \| Respond to of 27307

I'll sell it when (after) it's clear that the stock won't be going up (read: stay flat or go down). I have yet to find a person who is consistently successful in timing the market. If you have discovered that magic formula, love to hear. Note that I don't think valuation is a factor, at least not in the sense that you guys think of it. Yahoo is currently driven by momentum "investors". After Wednesday earnings report funds managers and people will realize: "I am paying 60 times revenues?" That is where valuation comes in while currently it is taking a back seat to momentum force. In contrast to your buying April 90 calls, I loaded April 95 put (which I expect to be in the money come Thursday) today. Hence come April 17 both of us will reflect to our today's actions, and will humbly acknowledge should YHOO runs up. YHOO won't go down until some bad news comes out directly from the company. It did go down today. Was there bad news issued by the company? BTW look forward to read your article on Microsoft Investor. Best wishes.

To: damniseedemons who wrote (9170)	4/7/1998 9:38:00 AM
From: Oeconomicus	Read Replies (1) \| Respond to of 27307

Sal, thanks for your response and I do think your switch to calls in prudent. I'll sell it when (after) it's clear that the stock won't be going up (read: stay flat or go down). Note that I don't think valuation is a factor, at least not in the sense that you guys think of it. YHOO won't go down until some bad news comes out directly from the company. Q: How will you know "that the stock won't be going up"? Technical momentum indicators? Other TA? Or will you know it's not going up when it's going down? Q: In what sense then, other than the way us guys think of it, is valuation a factor? Is valuation unlimited? As long as the news is good, the stock should rise regardless of underlying financials? At what pace should it rise - as fast as the numbers behind it (I thought they didn't matter) or simply at a fast enough pace to continue to attract new investors to the stock? I'll admit that momentum investing has been the winning strategy of late - what better momentum than in a mania? - but in the long run, financial returns and risks matter. I'm talking about return on capital in the business, not returns from stock appreciation. Increased valuations do not make a business profitable or even viable, but a profitable, growing business generally becomes more valuable (unless, of course it is priced too dear to begin with). Today's hot momentum investors, if they can't adapt to changing market and economic conditions, will be quickly forgotten. Your selling Yahoo is a start. Congrats! BTW, speaking of momentum investors who can't read a financial statement, Cramer has no business being on Squawk Box with Kudlow and Huey (sp?). That's one clown that won't be forgotten - he'll be a humorous side note in the inevitable books to be written about this mania. Bob