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


To: Original Mad Dog who wrote (15388)11/22/1998 2:00:00 PM
From: Saeed Al-Bahhar  Read Replies (3) | Respond to of 27307
 
Hi, I tried to work some numbers based on certain assumptions and I get a P/E of 37 by year
end 2000.

First here are the assumptions:
Increase in Revenue from one quarters to the next quarter is 33%.
Assumed a profit margin (PM) of 31% (based on last quarter Q3/98)
Shares outstanding is 114,456,000 and kept constant
Price taken to calculate a P/E is $ 191

Based on the above assumptions,

I got the following:

Year end 1998 1999 2000

Revenue M 196.33 611.92 1,914.7

Profit (PM 31%) 60.86 189.69 593.56

EPS 0.53 1.66 5.19

P/E 360 115 37

I am sure I went wrong somewhere, could someone please correct me
if I did go wrong.

I am a stockholder of YHOO.

Thanks in Advance,

Saeed




To: Original Mad Dog who wrote (15388)11/23/1998 11:23:00 AM
From: HG  Read Replies (2) | Respond to of 27307
 
MadDog, youre quoting me out of context.

<call it, as I believe Happy Girl did a few days ago, a mass
hypnosis.>

I used that phrase to describe the effect of breaking mental cages and venturing to think outside the box, in a business management class.

I doubt if the true YHOO investors or speculators (or gamblers if you wish), are in a state of mass hypnosis. It is not as if we longs are not aware of the "dangers of failure", its not even as if we are speculating - its just a difference in opinion about internet & portals in general. Some of them have to succeed...and YHOO is the current leader. I also believe XCIT is a promising star..and I've put my money where my mouth is. Working in hi-tech/internet industry, I believe initial leadership advantage reduces chances of failure. Now some longs ride on the coat tails of the believers, and there is a remote chance that YHOO fails in the long run, but these risks one takes with any stock.

In the end, all said and done, these are perceptions we carry based on the limited information available to each one of us. As such, there IS no right or wrong of investing. Investments are vehicles to greater wealth and choice of a vehicle is very personal.