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To: HiSpeed who wrote (14903)10/31/1998 11:43:00 PM
From: Dwight E. Karlsen  Respond to of 27307
 
Based on YHOO closing price of $130.844 on 10/30/98
Percentage price change year-to-date: 277.9%
Percentage change, last 52 Weeks: 496.9%
Price/Earnings Ratio (last 4 quarters): 473.7
Price/Sales Ratio (last 4 quarters): 99.7
Market Capitalization: $14.98 billion

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Amazing. Worth more than UAL Corp, worldwide airfreight and passenger carrier? Not. But the market and brokerages think so. Not only that, but it's much crazier than that: Brokerages think that YHOO corp is about the same as UAL Corp *and* AMR Corp *combined*. AMR Corp is the world's largest airline.

UAL Corp: Market Capitalization $3.61B
After-Tax Income (*ttm) $959.0M
Sales (ttm) $17.5B

*UAL is a holding co. whose principal subsidiary is United Air Lines which engages in commercial air transportation of people, property and mail. For the six months ended 6/98, revenues fell less than 1% to $8.50 billion. Net income applicable to Common fell 6% to $291 million.

AMR Corp: Market Capitalization $11.7B
After-Tax Income (*ttm) $1.23B
Sales (ttm) $19.4B

*AMR is a holding company which provides scheduled passenger and air freight services throughout the world (American Airlines), operates regional airlines (American Eagle), owns The SABRE Group, and provides a range of aviation services. For the six months ended 6/30/98, revenues rose 7% to $9.75 billion. Net income rose 54% to $699 million. Revenues reflect strong demand for air travel driven by economic growth.



To: HiSpeed who wrote (14903)11/1/1998 2:12:00 AM
From: zax  Read Replies (1) | Respond to of 27307
 
Perhaps these stocks would have stayed at 'more reasonable' valuation had not all these logically thinking folks not bet the farm against them. jmo.

This is reasonable logic.

What is unfortunate is that so many organizations are involved in this scheme.