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

To: Buster O. Hype who wrote (14462)	10/7/1998 10:59:00 PM
From: Stanisav Richter	Read Replies (1) \| Respond to of 27307

When I was first on the thread I said if YHOO broke the psych barrier of (what was then) $207 (now $103), it was off to the races. It was. Now their inclusion into the NASDAQ 100 has diminished the effective float so severely that there is no way for shorts to kill this stock. I would never go long such a stock, but it's pointless to short it. There is no reasonable economic argument for its valuation, but that makes no difference. YHOO will not be giving anybody bad news for a while and that's all the longs need. That's as far as their "reasoning" goes. That's really the end of the argument. Momentum in this stock cannot die until there is bad news that is perceived to be affecting YHOO directly and unequivocally. The move down to $60 intraday didn't scare the longs. In my view that means they can't be scared above that level - absent news. As a separate matter, I don't think the bear trend in the market will shake out until the 'Net stocks fall. Bargain stocks can't find value when they are being compared to fairy stories. KO's fall has helped the Dow by making comparisons more reasonable. DELL, MSFT, YHOO and all the other "invincible" over-valuations on the NASDAQ will have to come down before real stocks will look like anything anybody wants to own. I would say let the longs have this one. Let them drive it into the stratosphere before going short. Arguing with the market is completely pointless. Get on the bandwagon if you like that kind of a ride or get out of its way and be an opportunist.

To: Buster O. Hype who wrote (14462)	10/7/1998 11:44:00 PM
From: Dave Mansfield	Read Replies (1) \| Respond to of 27307

Speaking of YHOO's P/S, this appeared in Bloomberg: Written by Geoffrey Moore about the relationship between price and sales of various stocks. He broke the ratios down to those stocks with P/S's less than 1, 1 to 2, 2 to 4, 4 to 8, 8 to 20 and here is what he said about those with P/S's greater than 20: >>These ratios are either the artifact of very small numbers, typically associated with an infant gorilla candidate that is being valued for a wonderful future but has yet to generate meaningful revenues, or a signal of market mania. These companies would include Pixar, CyberCash, and Yahoo! The Internet stocks that have captured the market's attention can never be gorillas. That is, they cannot secure proprietary architectural control over the flow of the Internet. They can become strong brands, and thus, like popular TV shows and magazines, they can become extremely valuable as media for advertising, subscriptions, and transaction processing. But there is no evidence to suggest that these stocks could ever earn out the valuations they are currently "enjoying" - and I use quotes because, believe me, the managers of these companies are not sleeping well at night.<< Sleep well tonight.