Beer Cans
vs. Yahoo Stock
By Alan Lancz, editor
The Lancz Letter
We
received an interesting e-mail from an old friend who had read
our thoughts from two years ago on how companies like Yahoo should
use their incredibly inflated stock price to acquire some cheap
"real" asset companies. Here is what he wrote"
If you purchased $1,000
worth of Yahoo stock twenty months ago when it seemed like everyone
loved tech stocks, it would be worth $8.59 today.
If you had bought $1,000
worth of Budweiser (the beer in cans, not the stock) twenty months
ago and drank all the beer, then traded the cans for their $0.10
deposit you would have approximately $158. More than 4.5x your
total value from your original $1,000 investment in Yahoo.
We calculated what
$1,000 would be now worth had you purchased other stocks we were
negative on during the same time period:
| Beer Can Deposits | $158.00 |
| Cisco Systems | $144.00 |
| EMC Corp. | $95.00 |
| Red Hat | $15.89 |
| Palm | $9.69 |
| Amazon.com | $6.64 |
| CMGI | $6.42 |
| Exodus | $3.34 |
| V.A. Linux | $2.37 |
The
last one listed, V.A. Linux, was the most successful first day
IPO in history, significantly besting Microsoft, Dell and Apple
Computer combined. We recommended shorting V.A. Linux in Member's
Only after its absurd first day advance. A thousand dollars of
that stock twenty months ago would get you just enough to buy
one glass of beer today in most fine restaurants.
Editor's Note:
Alan Lancz is editor of The Lancz Letter, 2400 N. Reynolds
Rd., Toledo, OH 43615, 1 year, 17 issues, $250.
