Yahoo Japan is worth 7B. Guaranteed.
And Yahoo has 8B in cash on its books.
Take BABA at $39B, add in 15B
Yet as of today we are valued at ONLY $45B.
And we got another upgrade.
16B in taxes we don't have to pay.
And we are DOWN from Mondays close? Its beyond imagination. We should be up 10 points.
Instead we are down 50 cents from Mondays close.
This is not sustainable. I expect we see a sharp move up shortly. BABA's results should be their strongest ever, double the profit that FB has.
Just buy more.
Well I am impressed. WOW.
16 billion in tax savings, and now being poised to be bought by any number of companies with the residual core, and we get 40 cents.
This type of market imbalance cannot continue.
Alibaba is twice as profitable as Facebook right out of the gate, yet its treated like some toxic sludge.
Its the ultimate disrespect stock I guess.
BABA will release great numbers tomorrow.
If you wanna be short a company, might I suggest shorting BABA directly?
50 a share is $46B due to buybacks.
Baba is worth 39B. Cash on books is 8B.
Yahoo Japan is free. All other assets are free. Core business value ZERO.
16B according to MM.
We are only up a dollar from Mondays close.
We beat earnings, MM did the exact spin off we wanted.
The company is actually growing and she is not going to squander the money on crazy Snapchat or other junk.
And we are up $1.
ONE DOLLAR. I cannot for the life of me explain it.
I had it at 947, and they did a 22M buyback since.
I really doubt they gave away an extra 2B to employees. Seems wildly excessive and defeats the buyback entirely.
Lip service for something they already fixed.
If China cared about counterfeits, they can storm in to any Chinese factory and shut it down.
Its absurd they are even mentioning it, it just makes them look bad.
Meanwhile Alibaba profited from all the sales.
They have taken recent steps to stop the counterfeiters so who cares.
Its a NON issue.
If China is so concerned about fakes, its their country, shut down the factories that make the fakes.
BUY MORE BABA TODAY. SALES AND NET WILL BE RECORDS!
40B for BABA, 7B for YJ, 8B cash (was 11B, 3B is being paid in tax)
Current share count is either 947M or 919M (28M shares were bought back this Q)
Currently with shares at $52, that puts us at 48B or 49B.
So the shares HAVE to, and I mean HAVE to go up $7 bucks from here just to keep the arbitrage happy.
Worst case $55 is the new floor. Assumes all of Yahoos assets, acquisitions, users, income stream, tumblr, etc are worth nothing.
Imagine how much the shorts are going to lose from the close today to the close on Friday. 10 points maybe?
An Icahn can come in, take the company, sell the parts.
62B in assets and cash. Core business worth 10B
Nobody can risk shorting this stock when its perfectly easy for a large whale to come in and take the company at a discount. Make a quick 5B.