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

To: LoLoLoLita who wrote (10324)	4/19/1998 2:04:00 AM
From: OtherChap	Read Replies (1) \| Respond to of 27307

>With a $5-6 B market cap, they can use their own stock >for aquisitions. good plan, except nobody in their right mind expects yahoo's stock price to remain in the stratosphere much longer. i'm still holding my short position, and I still expect to make a killing on this one just like I did with PresTek. This weekend's barron's article was PERFECT timing. Now all I need is a down day for the market on monday, and the net hype ^H ^H H^ search engine stocks will fall another 20%. mark my words- the net search engine craze will be in the textbooks for financial analysts for years to come. it is fascinating to watch the panic buying and selling on these things. the barrons article pointed out that it was NOT institutions buying these stocks last week, but small individual investors (probably mainly over on-line brokerage services, i'd bet). when the shoe-shine man at the airport recommends search engine stocks, it's long past time to get out.

To: LoLoLoLita who wrote (10324)	4/19/1998 2:21:00 AM
From: Michael Collings	Read Replies (1) \| Respond to of 27307

David: The problem is that with the inflated price of the stock, inflated prices will have to be paid. My company just bought out a competitor for 2 million (neither are public). The company we bought had revenues of about 8 million but were not profitable. Liken that to the 100 million Yahoo paid for Four11. Four11 had less than 4 million in revenues, no earnings and commanded 100 million. What's Yahoo going to buy? Infoseek for 3 billion in stock? This inflated stock price is not that positive for the company and it limits what they can buy because any acquisition that is not a profitable company dilutes the stock. If the whole industry is inflated what advantage is the stock at this price? It also means that the cash they have held is much less valuable than it was a year ago, at least for acquisitions. They probably would have been much smarter to have used the cash a year ago because today it will buy much less.