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Tuesday, 12/04/2001

YHOO - Yahoo

Company Description

When Yahoo! was founded in 1994 by Stanford Ph.D. students, David Filo and Jerry Yang, it began as their hobby and has evolved into a global brand that has changed the way people communicate with each other, find and access information, and make purchases. Today, Yahoo! Inc. is the Internet's leading global consumer and business services company, offering a comprehensive network of essential services for Web users around the globe as well as businesses of all sizes. As the first online navigational guide to the Web, Yahoo! (www.yahoo.com) is the leader in traffic, advertising, household and business user reach. Yahoo! is also the most recognized and valuable Internet brand globally, reaching over 200 million unique users in 24 countries and 12 languages.

(Source: Yahoo)

Reasons To Invest

The broader advertising market should rebound next year. That includes the online advertising market. Analysts predict online advertising will rebound during fiscal 2002 after its eleven percent drop this year. The same analysts predict that online spending will reach approximately $8.1 billion next year.

The rebound in the ad market should be of benefit to Yahoo, one of the Internet's largest portals. The stock has fallen from its lofty peak valuation and although it still trades at a premium relative to historical earnings, it may warrant a closer look from a long-term investor in search of exposure to the Internet sector.

Make no mistake about it. While Yahoo appears to be a survivor of the Internet boom and bust, it is still a very volatile stock that carries a great deal of risk.

In addition, the company does not pay a dividend. That goes against the principle of dividend reinvestment plans. But the company does offer a direct stock purchase plan, which is conducive to longer-term accumulation.

The stock rebounded from its lows below the $10 level and recently traded as high as $18. While there may be some basing that lies ahead for this Internet bellwether, the fundamentals of its industry are improving. The company has taken steps to reduce costs and return to profitability. A new management team and a rebound in the ad market may be the catalysts that carry shares of Yahoo back above the $20 level over the next several months. Beyond, the company may turn out to be an attractive long-term investment for those in search of potentially higher returns with the understanding that additional risk accompanies any outsized rewards.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $50 to $150,000/year
Reinvestment Fees: 
Dividend: 0   Cash: $5+5c/shr   Auto ReInvest: $2+5c/shr

Transfer Agent:

Boston Eq

1-877-946-6487

Industry Group:   Internet/Media  52-week high=$44.00
Annual Dividend Per Share=   N/A  52-week low =$ 8.02
Last earnings 10/15     est=0.00  actual=0.01
Next earnings 01-15     est=0.01  versus=0.13
                                  P/E =  N/A
Analyst Ratings:
Strong Buy    =  4
Moderate Buy  =  6
Hold          = 13
Moderate Sell =  1
Strong Sell   =  0

 
 

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