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Yahoo! Inc. Message Board

  • optionstrader4u optionstrader4u Nov 15, 2012 8:14 PM Flag

    Here is my take on Yahoo and why this time is different....

    First of all, imo, Yahoo has a permanent put under its price of about $15-$17 just on the value of its holdings (cash, Yahoo Japan, and Alibaba). This put will just go up over time as Alibaba's value increases exponentially over the next year or two. Remember Alibaba did 3 billion in sales over the first 3 quarters and did 3 billion on Nov. 11th (Chinese version of black Friday). They will probably do over a billion in the 4th quarter which will put their earnings for the year at 7 billion of which approximately 25% of that is profit for them (this may change with the margins for 11/11). That means that Yahoo will get about 450m this year from Alibaba! Wow! You see where I am going with this? In my opinion Yahoo is already valued way above $20 without increasing their own revenues. This is just gravy until you get to $21 or $22. The new CEO is very cunning! She is from Google and those guys know how to manipulate and create for the betterment of the company! Lastly there have been huge buyers in the company as one fund bought 25 million shares in the 3rd quarter. This is getting ready to explode and I believe because of its holdings may be a takeover target for a Microsoft (who really needs something to change their direction).. You may wake up one morning with headlines on Bloomberg or CNBC saying Microsoft is making a $45 per share offer for Yahoo! Happened before and now Yahoo is in 10x's better shape than it was back then. Something to really think about. Again, All jmho

    Sentiment: Strong Buy

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    • Your opinion is more speculation and hope then fact based. The pain prediction price for April options is $15; which at this time suggests that a pullback in price should occur within the next 5 months. MSFT does not need Yahoo as they can easily duplicate with their own branding; therefore no buyout. A merger could occur with a simple stock swap would be more feasible for tax purposes.


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