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

To: Roger A. Babb who wrote (12211)	7/8/1998 5:54:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 27307

Amazon.com should go up in sypathy. It got beaten down recently and could rally back up. I'm short on it now but it could be a trading buy - what are your thoughts?

To: Roger A. Babb who wrote (12211)	7/8/1998 5:58:00 PM
From: Andrew Fenic	Read Replies (4) \| Respond to of 27307

Profit taking is imminent. $.15 per share when shares are priced at $185 + ?! $8 million in profit against a market cap of $10 billion?! Pathetic numbers. If it were any other company, Yahoo would lose 75% of its value on the open. What the news WILL do is keep shorts away. With nobody left to squeeze, the street is going to take profits over the next 7-10 days. We will see $150 before next Friday. Bank on it.

To: Roger A. Babb who wrote (12211)	7/8/1998 6:00:00 PM
From: 16yearcycle	Read Replies (4) \| Respond to of 27307

yhoo is growing revenues at ~300% per year now. If this were to keep up for 2 years, they would have a q of 300 million in sales, and earnings of about 1.12. That is a 4.48 e year; a pe of 130 would cause a price of about 580. Anyone shorting this is insane.

To: Roger A. Babb who wrote (12211)	7/8/1998 6:32:00 PM
From: J.S.	Respond to of 27307

Roger, You wrote "..next quarter earnings will be divided over a larger number of shares due to the private placement. Earnings must increase or EPS will go down." You forget that we are talking about a stock with an EPS of over 300. Assume that they keep only 25% on average of the proceeds from the from the private placement over the next quarter. They would only need to earn less than 2% (annualized) on this 25% cash to keep from diluting EPS. That, of course, does not include any potential return on the other 75%. In my opinion, this observation is as much a testimony to the overvaluation of YHOO as anything can be. Begrudgingly, however, the recent private placement can hardly be seen as dilutive in the short term. Good Luck, Joe

To: Roger A. Babb who wrote (12211)	7/8/1998 6:40:00 PM
From: Daniel Chisholm	Respond to of 27307

But since these shares were sold at a price in excess of book value, this sale is accretive to per-share value, not dilutive. And since the risk-free return available on this new cash (far) exceeds the current earnings yield (E/P) of Yahoo, EPS will increase. Each of these new shares outstanding resulted in the company's cash increasing by $183 (according to your post - I haven't verified this number). If Yahoo! places this money in tbills at 5% per year, this should earn $9.15 per year per $183. If instead of placing such a small number of shares, they should have (tongue in cheek here) doubled the number of shares outstanding, in return for $183 per share. That way, pro-forma quarterly earnings would be (9.15/4 + 0.15)/2 = $1.22 per share. This would represent a growth in per share quarterly earnings of 812%, all by just selling shares (to double shares outstanding) and buying tbills! If my scenario here sounds like a stupid excuse for earnings growth, that's because it is. Think about it. - Daniel