Its the SAME ship. YHOO has 410M shares of BABA. YHOO is 100% tied to BABA. But it also holds 12B in cash and other assets FREE!
You idiot. YHOO holds 410M shares of BABA. If you are short BABA, then you would hate YHOO.
You are too stupid to post on these boards.
BABA will close over its 52 week closing high today. As should YHOO.
I expect big news next week from activists. They are accumulating shares tomorrow as is MM.
YHOO owns 402 million shares of BABA. Thats 37 billion dollars. The company YHOO is only valued at $41 billion dollars.
And YHOO has 12B in cash on its books.
So if you want cheap BABA shares, just buy YHOO. YHOO is basically a closed end fund that holds over 400B in BABA stock. It also makes 2B a year in income from search pretax.
Baba is rolling up to 100 quite efficiently. That will be yet another data point that will spur buyout of YHOO. Baba at $250 means YHOO would own 42B worth of that stock. Which exceeds the entire value of YHOO currently.
Prospective buyers get all of Yahoos cash, Yahoo Japan, Tumblr, and the core business for 28 bucks, Yahoo breakup value would be $70 a share.
But if a sufficiently good offer were there, it could be done. Would be done.
And if the math works, someone can force the issue.
Why are our markets reacting to their absurd issues.
Any #$%$ can start shooting up the place. 18 people died in Chicago this last week. Its not on the news. Why is Canada on the news?
Give the big firms a day or two to digest the recent earnings and data. Next week we may see offers and rumors. This week MM and all the big firms are adding some shares, big buy on the close order too.
Sorry Canada, but one dead soldier off in your northern lands is not really news worthy. Why we are listening to a bunch of donut eating Canadian cops do a press conference in French is really baffling.
Baba does have lots of cash. They would get a pile of their own stock back worth likely 40B, they get cash for cash, and pay for Yahoo Japan. Might get the whole core business free.
That puts them, even with this pop, at a 41B company.
The shares in BABA, after BABAs pop today, worth 39B.
Yes YHOO is a closed fund that has 12B cash, equity in BABA and Yahoo Japan worth $48B.
But it also makes 2B a year in profit pretax. The core business is very profitable. If they broke off all the BABA and Yahoo Japan, and cash for $60 a share, you would have a $10 dollar stock that makes $2 billion a year profit. PE of 5.
Whats good for BABA is good for YHOO. If BABA gets a run up to XMAS to $120 or $150 we will see YHOO go to $80.