SFTBY is a much better way than YAHOO. YHOO's core biz sucks. Once Ali IPOs, YHOO will tank.
SFTBY has more potential in a variety of ways.
YHOO is a laggard/loser/has-been in everything it does.
SFTBY is a leader in some areas & a solid challenger in some.
#s-wise, SFTBY is a better proxy also, b/c YHOO is dominated by US investors, who piled into the Ali trade a long tie ago. IOW, it is in the price of YHOO.
SFTBY is heavily retail- traded by Japanese who have not focused on that as much. I know people in Japan. Ali gets nowhere near the attention among Japanese investors as it does among US investors.
question...why would Dan Loeb invest in SB and TMUS, but not directly into Sprint Corp. SB controls about 80% of Sprint...is the ETF angle the reason? if SB buys the DT's share of TMUS, doesn't Sprint benefit as well?
To me YAHOO has a better fundamental business model that can expand. Softbank offers exposure to Sprint as well, but I don't think as a stand alone business it is expected to grow or do as well as Yahoo. If you are buying Softbank, look at it as an ETF for Alibaba, Sprint, Yahoo Japan, and Renren with some minor mobile upside.
Check out latest SA article on SFTBY. With the 15% dip I will probably get back in. The Alibaba IPO may not bump up SFTBY as much since the bank is already huge with diverse assets.
Seems slightly overvalued but great ROE, w/ EV/EBIDTA fair. Alibaba claims they are going public definitely in 2014, so now seems the time to buy if you're getting in.
Sentiment: Strong Buy
The best way to own Alibaba is to use them in your business to make a profit... get involved in ecommerce directly. The company is not public and ownership via Softbank or Yahoo! is secondary and diluted., therefore speculative impact of Alibaba prior or post spin-off. Once it IPO's, the company stock might be worth taking a look at.
Alibaba is pursuing development of software and business partners. Recent activity includes this developer meeting in Seattle: search on " Alibaba Technical Forum "
I own both, along with KWEB. Definitely no expert.
In the long run, SFTBY appears a better stock - this CEO appears to be building a real empire. On the other hand, the market cap is already 100B so an AB IPO may not move shares much more.
If you're buying just for AB, YHOO may have the IPO already priced in, but is indeed always a takeover target.
If you're just starting to buy, I'd cautiously suggest 50% SFTBY, 40% YHOO, 10% KWEB,
Sentiment: Strong Buy
Yahoo will monetize the Alibaba, Softbank will not. Thats one of the reasons people are buying Yahoo. Other is possible takeover talk. JMO.