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

To: Mike M who wrote (9800)	4/11/1998 10:55:00 PM
From: William Cohen	Read Replies (1) \| Respond to of 27307

It appears that this week Barron's seems to have thrown in the towel - like many they don't understand why valuations no longer have any attachment to business realities. They now appeared stumped by the extreme valuation of Yahoo, but will no longer try and guess why - apparently they feel now that one should stay out of the way of the momentum - I take this as a signal that after another brief upward movement, we may see change - once the bears are all gone it's time to really get nervous that a correction will take place.

To: Mike M who wrote (9800)	4/11/1998 11:08:00 PM
From: Zebra 365	Read Replies (1) \| Respond to of 27307

<<<$5 Billion valuation for a $30M revenue quarter and a great story....Wow! what a racket.>>> Sorry Mike the racket is a little bigger. Fully diluted shares are 53,374,000. At 114 1/2 the market cap of YHOO is $6.1 Billion. William Harmond, you were right about the stock, but please don't talk about the 17 million in free cash flow generation justifying the price of this stock. $6.1 Billion invested in treasury notes at only 4% interest would have generated free cash flow of 61 million dollars for the quarter, three and a half times greater than what YHOO did. To their credit, 25% of YHOO earnings came from investing, not from selling ads or operations. If YHOO were to do a secondary offering and command these prices, they could double the free cash flow by simply buying treasury bonds at 5% with the proceeds from a 19 million share offering. In other words the stock price is so inflated that buying treasury bonds with stock would be a great step up in ROI. Good luck all Zebra