Yahoo (YHOO) now may have a better risk-reward ratio than just a week ago, when it was trading about $2/share lower. I recently wrote an article reviewing certain valuation measures about this company. I also discussed the improvement in the board and my hope that Marissa Mayer would be a transformational CEO.
That article was written on Feb. 27 when the stock was $21.16, and YHOO is $23 (pre-open) on March 7, when I am writing this. Yet I am actually more bullish now than then.
There are two reasons for this. The main reason stems from a Barron's blog piece:
Right now YHOO over $26 is all based on MM business turnaround success. YHOO at $26 is all about Asian assets. If you read the analysts research reports, $26 is valuated based on unexpected growth of YHOO Asian assets.