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To: Flan who wrote (25348)	7/8/1998 9:12:00 PM
From: P.Prazeres	Respond to of 95453

Here's a laugh. YHOO reported revs of $41 million. Let's say that it doubles its revs sequentially in the next 4 quaters. So: 82+164+328+656 = $1.23 billion which puts it a VERY OPTIMISTIC forward P/S of ~7.0. Anyone think that YHOO can double its revenues sequentially over the next 12 months? I don't. Even if it could, IT IS STILL OVERVALUED. Now, what if it doubles its earnings sequentially over the next 4 quarters (and yes, we'll ignore the "special" R&D charges) So: 0.30+0.60+1.20+2.40=$4.50/share which gives it a HIGHLY OPTIMISTIC forward P/E of ~44. Can it be done? Who knows? But this is what YAHOO needs to accomplish in order to maintain its current price twelve months out. And now, you can see the danger of shorting this animal. And for the record, the current HIGHEST estimate for YHOO in '99 is 0.80/share. Just some thoughts. Paulo