40% of Alibaba group: $20B
35% of Yahoo Japan: $5B
Yahoo Core business: $10B - $15B (Skype worth $8B)
Total: $40B - $45B
It's currently trading at $20B($16), it should be trading at $30B($24) or $40B($32)
That's fair - I don't knock you for trading Yahoo whether it be long or short. I bought YHOO at 16.01 yesterday and sold at 16.35 - 3000 shares but was happy with it considering the overall market. I bought back in at 15.94 average and holding overnight. I do actually believe in Yahoo's viability and it seems a strong buyout target. I'm primarily cash with some short hedges for overnight risk minimization.
Sorry, you just seemed confused jumping from book value to enterprise value.
Yahoo´s Range is $11.09 - $18.84 in a little over six months and moves very often 2%,3%,4% within the same trading day. I short and cover buy and sell not using some value I or some joker I don’t know from Adam puts on the company but on how the market is likely to move the stock. A nonsense rumor can drive the stock up or down but knowing its nonsense isn´t going to stop me from trying to profit from it.
Sitting impatiently waiting for easy money seldom pays off. There are a few on this board on their fourth year of waiting. Waiting while the busybodies have been making more every few months than they will ever get in a buyout or “when the market realizes the value of Yahoo”.
There is no point in insults This is a discussion forum where we are exchanging comments. If you are so convinced that Yahoo is going to go down then short it and leave it at that. I am long Yahoo stock - so that's demonstrates my conviction. If I am wrong, I am willing to accept that - in my brokerage account.
Lets try reality;
42% of Alibaba Group: $2B, I’m not as susceptible to rumors as some are.
35% of Yahoo Japan: $5B
Yahoo Core business: $10B, rather generous but will let it slide.
Patents: included in core just like cash, Yahoo finance Yahoo games etcetera.
It's currently trading at $20B($16), it should be trading at $17B($14). If not for the foolish and the power of rumors.
Silver Lake just paid $1.6B for 5% of Alibaba,
you value 40% of Alibaba at $2B?
You must be buying Yahoo puts and calls.
I bet you will never make any money out of it.
Don't ever dream of getting rich quickly buying options.
That's only the way you will lose your money.
Do investment instead.
Buy Yahoo and hold. You could gain 100% in two years.