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To: MR. PANAMA (I am a PLAYER) who wrote (10317)	4/18/1998 6:13:00 PM
From: Schmedley	Read Replies (1) \| Respond to of 27307

[Days like Friday are very important to get the fear part going.] While I agree that this may be true as far as price action in YHOO is concerned, one must also assume that days like Thursday spurred the GREED portion of the equation into action tapping out their short term reserves in a heavily overextended sector. But extreme share valuation has impact on more than one front; there's nothing like screaming and shouting VICTORY at the end of the 1st inning to motivate the competition. Competition which will come from 3 CASH LADEN fronts: 1) The Established Media Giants 2) The Established Cable Industry Giants 3) The Established Telco Giants -not to mention Microsofts new venture (as so many here have already done) If nobody's going to pay attention to valuations, I'm sure these bottomless pits of cash are more than willing to enter the game. But in fact the market DOES pay attention to valuations. The Merrill Lynch's of this world are well aware of that and will prop up prices for as long as they need to establish their huge short positions -even if this means instructing their "shills" to make favorable comments for the time being. Once they have established their shorts, the chaos of the momentum traders will churn for a few days (without reward) and begin to taper off. ( I believe this is what we saw on Friday). Shortly thereafter, we'll be hearing THAT GIANT SUCKING SOUND - you know, the same one we heard on NETSCAPE as it crashed from around 80 down to 15, as we did with IOMEGA, as it crashed from around 60 to 6, and countless others as those of us who have been around any length of time have witnessed on every front and in every sector. Why? That's just the way the market works! The stock market is the stock market. Don't be fooled into thinking that the internet stocks are going to revolutionize the way stocks are being traded. All you need to do is to take a look at your brokerage statements and there it is in fine print: "Unsolicited Trade" " This firm acts as a market maker in the above security and may hold a position" (If you were a buyer, you can be sure that they sold their stock to you and probably are holding a short position at this moment) In defense of the Merrill Lynch's of this world; it is they, who during crashes and selloffs that are in there propping up the stock at 1/2 the price when nobodies brother wants to own that issue any more. Call me a cynic if wish, but most folks who've been around awhile can tell you -I'm telling it like it is. Sincerely Schmedley