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

To: Bill Harmond who wrote (9805)	4/12/1998 1:38:00 PM
From: Zebra 365	Read Replies (2) \| Respond to of 27307

<<Your comparison to discounted future cash flow form a leading business growing this fast is absurd. Absurd I say! Off with your head! :) >> A one foot tree that grows one foot a year has 100% growth the first year, 50% growth the second year, 33% growth the third year, etc. While YHOO is returning good numbers for those who bought at $25 a share, it must grow sales tremendously to do as well for those who buy at $110. We never know the "true" market cap of a company, (which I would define as the sum of all monies paid by the current holders of all shares) and YHOO may be doing well for it's true market cap. My example of the tree describes how steady growth (the first derivative of the curve) may still result in a decreasing rate of growth. (the second derivative of the curve) My previous post talked about how, buying Treasuries with this inflated currency (YHOO stock) would be a positive move for the company. Other companies in similar circumstances have used their stock to broaden their market share through acquisitions in stock swap deals. IMHO it would be a smart thing for YHOO to look at buying up some market share using it's current stock. I think YHOO is a one-foot tree that will grow a foot this year. But to be a good deal at this price it must grow two feet next year and four feet the year after that. Maybe it will, but the market must believe it will in order to sustain this price. Zebra PS: And of course I wished I'd bought YHOO at $25, I may yet get the chance to buy it at $60.