Yahoo & Peanut Butter Market Timing

The aftershocks of the Peanut Butter Manifesto continue to be felt long after the explosions stopped. Earlier this week, The Street.com noted that Brad Garlinghouse, author of the PBM had worked at @Home, CMGI’s @ Ventures and at DialPad, three entities that met ignominious fate.

The fact that this observation was included in the snarky “Five Dumbest Things on Wall Street This Week” column, got one of their readers (name Tyler, second name not given) quite riled up, who wrote a stinging response, and copied his email response to some of us in the blogosphere.

The precis of the response was that Brad left @Home right at the time of Excite@Home merger, or near the top of @Home’s market valuation. He hightailed from CMGI to join Dialpad in late spring 2000 at a time with CMGI stock was almost near its peak. Since DialPad was a private company, it wasn’t the same public market situation, but in the end it did get taken out by Yahoo, where Brad worked.

Which brings us back to Tyler who observes, “the more accurate conclusion is that we should learn/watch when Brad leaves a company and know that it is likely the early warning indicator that his efforts to effect change have failed – and sell!” Okay that is something we had not thought of but the idea of Brad being a market indicator is intriguing. The only problem – Yahoo stock is already down 30% for the year.

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