Yahoo! is an example of an undervalued company anchored in preparation and continued share-price-appreciation ability. The old-school online portal is transforming itself into an aggressive market share taker and investors are taking notice.
Yahoo! shares increased over 60% from a year ago when hotmodel said Yahoo was dead money at $15.80, surpassing Google's 48%, AOL's 26%, Amazon's 25%, or Microsoft's 13%. In other words, Yahoo! wins Best In Show over the last year among these widely followed companies.
That's fantastic news for Yahoo!'s shareholders, but more important, the stars are lining up for another 30%-plus rise. I don't say that lightly, and if you follow my trading you quickly learn I hate chasing stocks, and I short most of the time. In my mind, shorting encapsulates lower risk than going long; nevertheless, when opportunity arises, I will pull the trigger on a long.
interesting-take this from hot one-check out fnhc!! around 150% increase & still undervalued esp. if the earnings are as good as they might be!!!!!!!!!!! hard to find stocks undervalued but this one could be a lot higher next yr.! very thin amount of stock available-0ver 8.00 true book value & 8 million shares at around 10.00! ace in the hole is if this quarter (& future ones) earnings are as good as they might be! yes- i bought at lower prices & still buying!
In a few days, Marissa Mayer will mark her first anniversary as the president and CEO of Yahoo! (NASDAQ: YHOO). The former Google (NASDAQ: GOOG) vice president for location and search was appointed CEO of Yahoo! on July 16, 2012, at a time when the company was experiencing some of its toughest times since inception.
Just before Mayer’s appointment, Yahoo! had hired and fired two CEOs in less than four years, along with other top executives. Since Marissa Mayer’s appointment, Yahoo! is up around 56%, and seems likely to build on that momentum going forward. During her time, the company has acquired 12 companies in a bid to turn things around.
For Yahoo! investors, a North American appearance of Alibaba could involve an alliance with Yahoo!, or more likely an independent Alibaba web commerce portal. Either way, an expanding Alibaba is a significant tailwind for Yahoo!'s valuation and earnings.
Yahoo!'s CEO Marissa Mayer already established the company on a conquering path, as best illustrated in Yahoo!'s shares increasing the before-mentioned 60%. After factoring for an Alibaba entry, I believe another 30% upside is conservative.