thegreatcrash.com press release

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Jan 5 23:12:21 PST 2000


From zee at ix.netcom.com Wed Jan 5 07:55:00 2000

>You'd have to define "proper valuation" first. Go on: I dare you.

>How much *should* this market be valued at? And what makes your

>measure right?

Let's pick one high flying stock just to get our lines

reasoning clear and then see what we can say about the

whole market. How about Yahoo.com? Even though they've

lost 20% of their value over the last 2 days, they're still

at 410 right now. How much would they have to pay in

dividends to make your ownership of their stock profitable

over, say, a 40 year period?

Ha! You fell for it!

Yahoo doesn't pay dividends, so why on earth would it be "valid" to "value" it's stock based on a dividend stream? Similarly, since there's no dividends, what do you care about their earnings? They aren't sharing any of their earnings (or losses, for that matter) with you as a shareholder -- so why do you think this is the way to "value" a stock?

/jordan



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