I bet YHOO is heavily shorted with a reason that YHOO core value is negative at this time after a 32 to 44 run. Yahoo management should announce their plans how to handle tax issues as well as stock repurchase programs to stabilize its share price in the near future.
You keep YHOO, wait for next week to see how BABA does. You do not need to purchase BABA for Yahoo is 25% of BABA. If BABA takes off next week so will YHOO. YHOO is better value at $43.00 a share. If BABA goes up 20% next week so will YHOO.
As expected considerable fluctuation today. Perhaps also tomorrow...unless they price IPO tonight? I missed the bottom of the dip this AM, so I will just hold pat and see what happens. This is like twilight before a fireworks show. The sunset may have been pretty but you really are itching to see those rockets explode in vibrant color.
that 3com/palm scenario is not comparable to the yhoo/baba situation for one simple reason.
baba is NOT a subsidiary of yahoo.
I'm also expecting something above $60 for Yahoo within a couple months. Starting on Friday, YHOO will trade substantially in line with the BABA price.
Now today most of these postings are "why YHOO is down" no more of YHOO going to $55 YHOO to going $60 YHOO going to $70.
I think this is a multi week story. BABA will keep rising, Yahoo though will be kept in check until it can't be any longer. Ultimately Yahoo should surpass $65
Once BABA is traded, investors will redistribute assets among the tech stocks. Some will sell current holdings before Friday, others will not. What happens before Friday is not really that important.
Jack Ma is assuring that BABA will close Friday (and for weeks later) at above the IPO price. He knows that doing so will give BABA investment an enduring credibility.
Need to see which direction the market goes after Ms. Yellen speaks tomorrow. I think Yahoo goes lower tomorrow before it rises again before Fridays event.
One more day..be patient!
Heres a logical answer. Yhoo guarantee to make 40billion. The big question is, what will melissa do with it to make yahoo info a power house.
A- Mr. Market doesnt trust how YHOO will handle their ownership interest and the cash they receive attributing significant negative value to the Core YHOO business model.
B- Mr. Market thinks BABA is overvalued and will pull back after the IPO and basically do an FB...
No other explanation that I can see...
AMZN should have bot Softbank and YHOO together last year... ha they would have owned nearly 50% of the company and controlled the Worlds e-commence business.... Instead they were wasting money on flying robots.... AMZN is doomed....
Here's a thought:
The problem - OPTIONS
It’s a nasty game, and the small investor HAS NO CHANCE.
The small investor with his/her $10 chips sits across the table from the big players with their $100 chips.
When SO MUCH MONEY is put on the table at the options exchanges because of a “sure thing”, big money cannot / will not stay out of the game. Big money can / will drive down share price by selling shares in small increments at low prices or short them until most short-term calls expire - by the way, guess who collected the premium on those calls. Then what do they do with all of your option money that they’ve just swept off the table? - They start buying their shares back at cheaper prices. And there are plenty to buy back now because the drop of the “sure thing” has triggered margin calls and / or scared the average investors into flooding the market with cheaper shares.
The solution - GO LONG and DON’T USE MARGIN
YHOO will hit $50 + at some point soon (weeks not months) but not before big money has cleared the gambling table. A margin-free (or at least less than fully leveraged) long buy today of YHOO will be profitable within 30 days, and you can sleep at night. Now, if the entire market decides to head south, that’s a different story. But at least you can wait that out.
$$$-Allocation is almost completed. Who took advantage is fine now..Few procrastinators may join any site yet..
The rest is set-UP and happy :)
Break-Out to be continued.....
Since yesterday we are not hearing those posts saying YHOO $60, YHOO $70 YHOO $80. It is quiet yesterday, today and probably tomorrow too.