Chase Coleman is a believer in Yahoo's undervaluation and holds a sizable stake of $278 million
Chase Coleman is a believer in Yahoo's undervaluation and holds a sizable stake of $278 million. And rightly so, with a new management team in place and substantial amounts of share repurchases in the pipeline owing to its partial sale of Alibaba, Yahoo has a lot of upside. Yahoo is slated to do an additional share buy-back of more than $1.5 billion, which should drive the stock higher.
More importantly, Yahoo's stakes in both Alibaba and Yahoo Japan are both underpriced in its balance sheet, and have a much higher intrinsic value. In particular, the 24% stake in Alibaba is worth a lot more, and should be a major catalyst for Yahoo's fortunes once Alibaba conducts a widely anticipated IPO in the coming years.