This group as a whole has been depressed in the past three months. I think what you're seeing today is that investors think these companies should be worth a lot more, |
This signals that the board plans for the company to remain independent as its attempts a turnaround. |
We maintain a bullish view, however predicated on indications that the fourth quarter is tracking inline/slightly ahead of expectations, an upward bias to fiscal 2006 earnings estimates, the fact that investors are beginning to look at and discount fiscal 2007 estimates, which make valuation multiples more palatable, and further consolidation into the New Year. |
We're expecting a very strong quarter. The question is will it be good enough to keep the stock going? |
What we are not seeing is a clear indication for the 2002 revenue numbers and that will continue to be somewhat of a question mark. |
When you look at valuations, when ( AOL ) was trading below $30 [per share], it was below its growth rate. Even for a normal company, this is an aberration and an established, bigger company should trade at a premium. |
Yahoo's branded business should benefit from a combination of volume and pricing growth, driven by the holiday shopping period and by continued migration of ad dollars online. |