Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Slumdog who wrote (16015)	12/10/1998 7:26:00 PM
From: HG	Read Replies (2) \| Respond to of 27307

I acknowledge your right to your opinions. After all, this forum is created to discuss issues. Your post has the appropriate tone of a discussion as against a meaningless arguement and I will try and provide my own observations on this issue. I agree with your comment that margin requirements were modified to prevent the price from plummeting. So far so good. Where our opinions diverge is that IMO the fear of a crash may have been based on the fact that there seemed to be no sign of a break in the rally. Within 4 weeks (or so), YHOO up from 59 to 227. If this had continued, it would have risen up to 350 - as some had predicted. IMO the regulation came at an appropriate time to prevent the rally to 350...and that being so, it has created a more stable base for further movements. My observation that margin requirements may be lifted in Feb/Mar or even May stems from the fact that once YHOO stops being a momentum stock and trades on its merits, the requirements can be eased. The short term investors by then, would have left to seek greener pastures elsewhere. Another issue which somebody on this board enlightened me about ((MadDog perhaps ?) was the fact most online houses were trying to become brokerages for futures. As such, they would be deeply into games to impress the Feds. Feds, even if they were not responsible (and that's a BIG even if) for the new margin ruling - would LOVE this step. This is something you may care to discuss with MadDog as I'm not very conversant with the proposal re: futures. And the other part about blue chip....let me begin by asking you a question - do you see YHOO as a core institutional holding ? Do you also realise that institutions are sitting tight on this stock - and hence the current price premium. That they perceive it to be a value stock, a high growth stock. If they had taken profits I would have my doubts....but when MSFT plummets, institutions keep holding on to it, when CSCO plummets, institutions buy more. Does this institutional buying and holding qualify YHOO for a blue chip status at all ? Would you feel better if I used the term potential blue chip - can we agree then ?