Here is a suggested plan to implement your idea::
Have Stock price pegged right now at $48.00 perhaps $50 for Alibaba offering
As part of the Alibaba offering--- all Yahoo shareholders would receive
1 Alibaba share for 1 Yahoo share.
Alibaba does not have to come up with any cash to acquire Yahoo.
Yahoo would be a wholly owned subsidiary of Alibaba.
Yahoo shareholders have something worth $48.00 - $50 right
at the closing of the offering---still huge upside from there
(better IMHO to own Alibaba after the offering than Yahoo)
Existing stock (the 22.6% of Alibaba owned by Yahoo-
would of course now be owned by Alibaba, as would
the stock in Yahoo Japan currently held by Yahoo.
These shares would come out of the Yahoo subsidiary and
moved up to the Alibaba parent company---(Alibaba could
retire the 22.6% Alibaba stake formerly held by Yahoo.
Several days perhaps --not several quarters IMHO--
Forgive the anthropomorphic overtones but "the market has a short memory" (sometimes)
Yes an overall market dominated by hedge funds,
day traders momentum players and high frequency traders
all operating in a casino arena environment---in essence
pressing buttons --with computers triggered, all-watching
numbers on computer screens and mobile devices all
over the world.
Right now an incredible struggle-- a battle for investment survival--
which one will prevail ---will it be the:
Raw Power --one smash with a giant paw---ripping claws
can jump on you, chase you up a tree --can crush you --a dangerous animal indeed!---or the
Raw Power--can uplift you with a one powerful upward toss send you soaring!
Do not disagree, however, remember the great scene from "Trading Places"---
Winthorpe trying to pawn his expensive watch---The owner of the Pawn Shop
tells Winthorpe in no uncertain terms---"In Philadelphia its worth 50 bucks!"---
Reality sets in---
Right now Wednesday June 11th 11:04 AM Yahoo on NASDQ --is worth 36 bucks and 58 cents---
Headlines has good article on the issue under discussion---(see first article under Headlines)
Although you may not get a response to your letter , it is quite likely your letter will "register"
In the investment arena perception is pretty close to reality---management has not
done a great job of explaining why they are challenging the SEC while at the
same time saying the SEC position is positive for investors---IMHO a good question!
Thanks good summary
I assume your $60 # comes from adding to the $45
$9.00 for yahoo japan
$6.00 for core Yahoo (which would not include any
contribution from Alibaba and Yahoo Japan
We do not want to double count)----
I think it is a clock. Wait a second hold on---may as well check now while I
am posting this---just take off the wrapper----open the box---hmm, another
box inside the first box---ok one more second---I"ll open the second box----
so far so good --ok---just look inside and----
New to option arena---Bot today---10 yahoo jan 2015 $30 @ $7.12 approx $7,000
Would appreciate if you could comment on this vs. out of the money
Oct 2014 $40?
Thank you very much.
For what its worth ---and its not worth much--here is what was going through
(what is left of) my mind when I made my first foray into the option arena --
(could be my first and last depending on what happens:)
(1) 10 calls November SRPT $30---paid $7.03 total of approx $7,000
These were the only calls of that description traded today.--I may have overpaid by $1,000?
At the time the stock was trading @ $33 +/-
(2) could have bought 1,000 shares of stock tying up $33,000--Would be up up a point
but would have involved more risk---
(3) Iigured the most I could lose was $7k
(4) figured if the stock were to move up to $38 (the recent offering price where presumably
a lot of smart people including the underwriters thought was reasonable at the time)--
the calls would go to at least $8.00 and probably trade at $10.00??---.
(5) If $10 were the "right projected number" under this hypothetical scenario,
(and there is probably a lot of complicated math involved in this determination which
I do not know how to do)--in any event Ithis would involve a 42% profit on the investment
(6) Assuming the same scenario had I bought 1000 shares of the stock at $33 a 7 point move
to $40 works out to a 21% profit
(7) If some major surge were to take place in the next 2-3 months to $48?? (dream on),
then percentage return and actual $$ return would be quite high on a relatively small investment---
I am probably missing something---and if I am any thoughts on this once again appreciated--
(I promise I won't be like Detective Columbo and come back with more questions).
Thank you again and GLTA
Would be interested in opinion(s) concerning something I just did and
whether or not it was a good idea?---Although involved in the financial markets
for a long long time (too long according to some people I know), have very
little experience with options---in any event just bought :
10 calls SRPT November 22, 1014 @ $7.03 --Total $$ $7,049
Seems like a good idea--leveraged with not tying up $33,000+ at this time?
Any thoughts or suggestions appreciated.