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Technology Stocks : Lycos -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (1295)	1/11/1999 4:32:00 PM
From: Joe E.	Read Replies (2) \| Respond to of 2439

<<By what measures ought Lycos be selling at 1/2 of Yhoo. what is your reasoning? >> OK, seems indisputable that they are in the same biz. Assuming you agree, then... (all financial data from Yahoo Finance site, which might be close, who knows?) Book value: Lycos:$7.29/share Yahoo: $4.44/share Sales: Lycos: Lycos $2.06/share Yahoo: $1.58/share Sales growth latest qtr versus year ago: Lycos: 166%, Yahoo: 196% Cash: Lycos: $3.28/share Yahoo: $3.94/share Projected 5-yr EPS growth: Lycos 54%, Yahoo 60.2% OK, based upon just these numbers, Lycos is probably worth more than 1/2 a Yahoo, but the evaluation has to include eyeball count, too. Unfortunately I have to head off for a while. When I get back I will follow up with some eyeball count stuff.

To: jhg_in_kc who wrote (1295)	1/11/1999 9:01:00 PM
From: Joe E.	Read Replies (2) \| Respond to of 2439

part 2 <<By what measures ought Lycos be selling at 1/2 of Yhoo. what is your reasoning? >> I already discussed some financial statistics. Now I want to cover audience reach. Source for this first audience reach statistic is this article, already discussed on this thread: biz.yahoo.com which shows Lycos with an audience reach of 45.2% vs Yahoo's 48.0% in November. On a per share of stock basis, Lycos has about twice the reach per share as yahoo. Other articles have made it clear, though, that the average Yahoo user spends more time on Yahoo than the average Lycos user spends on Lycos, I can't find those statistics, but I refer you to an article (whose statistics are a few months old now) at business2.com It shows Lycos with monthly page views (a surrogate for time spent) of 775,777,371 compared with 3,806,848,681 for Yahoo. Dividing these monthly page views by the shares outstanding (as reported by Yahoo finance) gives: Lycos 18.1 page views per month per share Yahoo: 38.7 page views per month per share. So on a per share of stock basis, on the basis of total reach, Lycos is way ahead, but in terms of pages read per share of stock, Yahoo is about double Lycos. I think that Yahoo should also get the benefit of being the biggest and of having reported the most recent accounting profit. So Yahoo closed at $414 while Lycos closed at $131. Lycos is selling at .3 Yahoo. .5 Yahoo (today) would be $212.