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: HG who wrote (17347)	1/10/1999 9:05:00 PM
From: Dave Mansfield	Read Replies (3) \| Respond to of 27307

>>if you are not sure, why are you betting heavily on it ?<< First, as previously mentioned, my bet is off the table so at this point in time I'm no longer betting against it. Second, nothing in life is certain. I am not absolutely sure about anything. But I am reasonably sure about a great many things. I feel very sure (90%+) that Yahoo will not grow into it's valuation over the next 5 years. What I am not sure about (and this was a very difficult lesson for me) is how market sentiment will treat this stock. I totally blew that one and freely admit it. Market sentiment is a short term indicator/predictor of stock price movement. Fundamental analysis (and that involves predicting future cash flows and earnings, possibly years down the road) is a long term indicator/predictor of stock price movement. Pretty much all of the bullish analysis I've read on this thread involves sentiment, technicals and such. It has been accurate and rewarding for those who have done it, but I still believe it is the psychology of short term investors that has driven the stock. Fundamentals will return, I'm admitting I just don't know when. Finally, the following statement intrigues me: >>I am a long term investor in YHOO, but my current stage of life will not allow any losses - hence the in and out.<< Another confusing statement that does not make sense to me. And that has all the attributes of short term investing. You say you cannot afford any losses, but you buy into a volatile stock. It goes up and DOWN $30-$50 on a daily basis. So far you've been, lucky that drops have been followed by gains. One day that will not happen. But if you were what I truly consider to be a long term investor, you would not have to worry about losses. If you bought a year or more ago, the drop in share price for you to incur a loss would be so great as to be nearly impossible to happen. Let me say this, your next purchase of Yahoo will be your riskiest ever. The potential for a $100 drop increases as the stock reaches higher and higher valuations. So is you cannot afford any losses, I don't know how you can buy back into Yahoo.