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

To: Mac S. Giballa who wrote (15046)	11/10/1998 11:29:00 PM
From: Dwight E. Karlsen	Respond to of 27307

Scott, no problem. Let's take your best senario: >And you can work a little uncertainty into your equation, say 90% chance of $337 in 1 year,..< Scott, that's still "only" a 106% return from yesterday's closing price. If you bought at the close today, now your return in the one year time frame is reduced to 91%. K-Tel returned 98% in one day, today. Plus to buy Yhoo today, is to buy one of the most irrationally priced stocks in a very long time, if not ever, taking into account the total market cap vs. price to sales. Yesterday the PS ratio was around 125. Today? 135. Up 10 PS points in one day, where a total PS ratio of 10 is far higher than "normal". So we're talking roughly more expensive than normal expensive by a factor of 10 times. Suddenly your theoretical 90% probability of hitting the $337 price within a year doesn't look so good. Let's ogle over the numbers: Based on YHOO closing price of $176.563 on 11/10/98 Percentage price change year-to-date 409.9% Percentage change, last 52 Weeks 626.1% Price/Earnings Ratio (last 4 quarters) 639.3 Price/Sales Ratio (last 4 quarters)134.6 Market Capitalization $20.21 billion -------- I've made a conscious decision to refrain from guessing the top though, for this swing up. Doesn't make any sense to take a bearish position in a stock making daily new highs. So far, I feel like a winner just because I've refrained from taking a bearish position. "Our jaws are just on our chests." "We hear he's just really bullish". So said traders of internet stock options, in the pits I think Monday. Saw the article yesterday, anyway. "He" sold 7,500 put options on YHOO, at 150 strike, Nov. expiry. Somebody made a quick few million dollars, at least so far. I can't help but be somewhat impressed.