Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ricecr who wrote (12640)	7/10/1998 11:36:00 PM
From: L. M. Zeidler	Read Replies (1) \| Respond to of 27307

YAHOO rose 26 dollars a share Monday, in anticipation of an earnings report which was six cents a share higher than First Call consensus estimate. Insiders must've known what was in the report a few days in advance. If YAHOO were priced at the $26 by which it rose, fifteen cents a share in net profit would be less than other companies similarly priced-- say, Seagate. When the Commerce Department issued a report a few months ago that Internet commerce would be over $300 billion, YAHOO buyers reacted as if YAHOO would be earning the bulk of that figure, which isn't likely. When the history of this summer is written, this is what will be said. You can be online for hours on end without every visiting a YAHOO page. It would be interesting to cross-check the 18 million registered users against AOL's subscriber list to see how many duplicates there are. SOFTBANK's purchase agreement at 183 prevented the stock from sliding back to 150, last week, but this will prove to be as temporary as the Federal Reserve Board intervening to prop up the JAPANESE YEN.

To: ricecr who wrote (12640)	7/11/1998 9:08:00 AM
From: tonyt	Read Replies (2) \| Respond to of 27307

>Ask your friends who use the internet, and I'll bet 9 people >out of 10 will say that they use yahoo! to navigate the internet. Ask the same 10 if they ever 'clicked' on any of the ads. Ask them to name 10 companies whose ads they read on Yahoo!

To: ricecr who wrote (12640)	7/11/1998 11:00:00 AM
From: Elllk	Read Replies (1) \| Respond to of 27307

Look at a 2 month chart of Presstek (PRST) from about May/96 when it hit 200. Obviously the rise for both was exhilarating but you don't want to be around for the denouement of Yahoo if it follows the Presstek model, which is probably the closest, relatively current, approximation we have to the rise of Yahoo as well as the psychological and other factors involved in the rise. There are some differences. There is probably a bit more reality for Yahoo in the potential valuation through potential internet predominance (of course, I think the doubled potential phrase is correct usage here). On the other hand, there is a lot more competition. Presstek also split 2 for 1 to try to maintain the momentum. It is currently at a 11 1/2, or pre-split price of 23. It also had a wonderful new technology and although everyone knew that squeezing the shorts was playing a part in its rise, it seemed unstoppable. Interestingly, the surge of the past 2 months for Yahoo and the final 2 month surge of Presstek to 200 are almost carbon copies (with Yahoo's surge, in fact, being a little sharper and steeper) indicating that we may be dealing with a similar, overriding dynamic, which seems likely to be the much stronger role being played by the short squeeze than initially thought.

To: ricecr who wrote (12640)	7/11/1998 6:45:00 PM
From: craig crawford	Read Replies (2) \| Respond to of 27307

>> I mean how many people do you know that made millions off of shorting Microsoft, Cisco, Dell, or Intel? How many people have made millions shorting MU, AMAT, NSCP, PRST, IOM, C$CC, A$ND, COMS, SHVA, NN, NOVL, AAPL, DIGI, DDIM, ZITL, etc? My point is that for every DELL, M$FT, INTC, C$CO, etc. out there, there are 1000 companies that don't measure up. People that short YHOO are betting that YHOO management won't execute brillantly like a Michael Dell, a John Chambers, or a Bill Gates. If you have brilliant people running YHOO they will find a way to make money, and in 10 years this market cap will look like a bargain. The point the bears are making is that at these valuations YHOO could execute brilliantly and maybe the stock price still wouldn't make much progress for a while because the valuation is stretched to the limit right now. Look out below if YHOO even stumbles for a short time. Just remember though, for the last few years people (including myself) have been saying that the PC business is extremely competitive, frought with low margins, PC growth has to slow down, and DELL doesn't have a dominant or monopoly position like an INTC or M$FT. Yet a simple but effective business model has made DELL investors DELLionaires practically overnight. Considering the revolutionary way the internet is affecting how we communicate, learn, and transact business, coupled with the immense efficiencies and direct marketing reach, it is not unreasonable to imagine how a savvy management such as YHOO's could not surpass the wildest of expectations. Ask yourself this. Michael Dell built a $60 billion dollar company by selling relatively low margin PC's, in an industry growing at 15-20% a year, all the while controlling only 7% of all PC sales worldwide. How hard is it for YHOO to surpass that performance in an industry growing far more than 15-20% a year, with expanding margins, and a direct marketing business model that far exceeds that of DELL? I better sign off before I get too excited and place an order to buy YHOO on the open monday.