Why do you choose a sick patient – YHOO? This stock may keep downwards or at most sideway for years, a lot healthy stocks you can play, e.g. Agri sector, big money finished consolidation and is launching a new run today.
If a stock is “Cheap” by price, but never up or mild down, even shorts cannot make dimes, this stock is DEAD money by definition. The risk of market is – it’s much easier for you to buy a stock by click than doing DD.
YAHOO has made many investments over the years in other countries. While they are minority positions YAHOO has never cashed in.
My thinking is that Yahoo has not been able to make a go of it and its shares have declined in half over the last two years. All those investments made by Yahoo over the last ten years have matured in price, so even if the U.S. company is unable to perform and keeps declining to let's say $10-11, someday those investments in Asia mature. Someone wants Yahoo's name and investment portfolio.
Perhaps it's a bad idea. If I want a tech name and am unable to afford Google, I should consider INTC or QCOM or BRCM.