Yahoo is at $18.25 a new 52 week high on heavy volume. Who else shorted Yahoo at $15.80 one month ago other than hotmdel?
The big question is: What is YHOO going to do with the cash?
A. Buy stock back; but only at much lower levels?
B. Buy another company? That might be the best option.
C. Pay a special dividend? Not so likely as I believe they want to keep as much cash as possible and the timing could affect the return to investors.
That leaves investors who rushed in to buy stock in YHOO with a problem. At some point they will have to make a decision as to what to do. BUY or HOLD will be their decision to make.
prob. be buying another company or two, AND buying back stock here and probably much higher cause thats where she's goin !
Sentiment: Strong Buy
Looks like YHOO will do A and B. No word on C.