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To: Smart Investor who wrote (15590)	11/25/1998 3:49:00 PM
From: Original Mad Dog	Respond to of 27307

SI-- We agree on much of that. I would just argue that as you grow revenues, you have to have a plan -- even if it gets improvised along the way as it must in response to changing conditions and new insights -- about how you get to a state of high revenues as well as decent margins. I would venture the statement that virtually all companies that command higher than average multiples in the long run have good revenue growth and healthy margins. K Mart has pretty high revenues, but their margins are no good and their competition is killing them, so where does it get them? I think AMZN is headed toward being a very high revenue, extremely low margin business. Most valuation models punish businesses like that severely; supermarkets come to mind as an analogy. YHOO strikes me as having more hope of building a high margin, high revenue business -- but there is a minefield between here and there, and a lot more mines got planted in the last week. I agree with your point about the split not being in YHOO's best interest -- I made a similar point a few days ago (can't remember but I think it was on the YHOO thread). MAD DOG