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

To: Bill Harmond who wrote (10331)	4/19/1998 3:15:00 AM
From: Michael Collings	Read Replies (2) \| Respond to of 27307

Unfortunately William, I think you are confusing a mania with value. A company is valued by what it earns and what it may earn in the near future, not by manic behavior of a speculating public. Anything is possible in a mania..... $150, $200, $300, but when the fervor dies down Yahoo will trade on its earnings not its hype. The Mississippi Company in 1720 kept France rich for 3 years until it's inflated value brought down the country. Many stocks (and I won't insult you by naming them) have temporary runups in market value. They only stay there if there are earnings to support the price. The future is abstract so stocks factor in growth rates using a p/e model. This makes sense. What doesn't make sense is that the regard for basic fundamental value based on years and years of market history is suddenly thrown out the window because the future is perceived as so bright that fundamentals of value have no value. I know, its a new paradigm, a new era for investing. But William, I assume we are close to the same age, and I can remember hearing about "new eras" before, don't you? Markets end on mass speculation, and huge public involvement. What do we have here and now. Surely you don't think that this mania for anything internet is based on sound financial reasoning (yahoo aside of course)?