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

To: Rene Madsen who wrote (19833)	2/9/1999 1:42:00 PM
From: Howard Hoffman	Read Replies (1) \| Respond to of 27307

In the long run, the value in any stock is represented by earnings. One will pay a premium for earnings that are growing. One will pay a great premium for earnings that are growing fast and can be expected to continue to grow. One will pay a great premium for revenue that is expected to grow because it presents the opportunity for great future earnings. On the above bases, YHOO has value. YHOO deserves a great premium. YHOO does not deserve to trade forever without regard to price or P/E or P/R. The longer it has traded without regard to P/E or P/R, the greater the risk. The greater the number of people making posts like "You don't understand the Internet. Earnings don't matter. P/R doesn't matter.", the greater the risk built into the current price. There still is restrained volume on this current e-stock correction. We are not near a bottom yet. Hence, I conclude that the probability that we are still headed down. Some day YHOO may be worth $200 (post-split prices of course). It is not now. It is not worth $200 on any valuation method. It was only worth $200 (briefly) because there was a greater fool out there to pay that price. Your chance of selling at $150 appears to be going pretty quickly here.

To: Rene Madsen who wrote (19833)	2/9/1999 1:52:00 PM
From: Howard Hoffman	Read Replies (3) \| Respond to of 27307

One more thing: It would be nice if stocks went up at a constant, predictable rate. Then they would be a sure thing. Then everyone would buy the fastest rising stock. That is what happens. This drives the fastest rising stocks up the most, the fastest. They get too high. Then they have to correct. This is a large part of what technical analysis is about. The more a stock or a sector is ahead of itself, the greater the risk. There are more naive investors in the Internet stocks with more $ than ever before in any sector in history. When these investors start feeling real pain, then they will be puking out their shares and there will come a selling climax. Then there may be some sanity restored to the sector.