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Strategies & Market Trends : Yahoo and other bubbles...when will they burst? -- Ignore unavailable to you. Want to Upgrade?

To: Howard Hoffman who wrote (100)	2/9/1999 6:17:00 PM
From: Dave Mansfield	Read Replies (3) \| Respond to of 139

Agree with you whole heartedly Howard. In a previous post I admitted that I wasn't sure how or when it would happen, but today's "event" has opened my eyes. And the "event"? The Lycos deal. Many Yahoo longs were spreading the rumor about the possibility of Disney taking a run at Lycos. I poo-pooed that saying that Disney had no monopoly money to deal with. Just hard cash and their reasonably valued stock. Why would any sane person wish to use hard assets to buy a frothy company such as Yahoo? Answer is, they won't. And that should have become painfully clear today. USA found it's monopoly money and used it to buy Lycos. And Lycos' reaction? A $33 drop. On a buyout. When was the last time anybody saw a stock drop $33 when a buyout was announced? It just doesn't happen does it? Until today that is. And it's because internet stocks are different. They are more overvalued than anything since the late 20's. Maybe worse. Yahoo followed suit with a $17 7/8 drop or $35 3/4 pre split. This all after previous significant drops. Just think. About a month ago it was trading at $445 pre split. We're now around $280 and still dropping. So a buyout will not save Yahoo. Most of the longs freely admit that fundamentals won't save it (fundamentals don't matter for net's remember?). So all that leaves is the greater fools. And they all bought north of $300 and many over $400. Face it, it's over, I hear the fat lady warming up in the background. My target Howard? $30 to $40 post split. $60 to $80 pre split. Could this be why they only split 2 for 1? Could it be they foresaw what is happening? Dave