Congratulations to Jack Ma and BABA, and thanks Jerry Wang. Much of yhoo's value is due to your efforts. Hoping that value can continue to be unlocked for yhoo. !
If baba opens at or above 90 and yhoo does not pop upward then one must look to a big time manipulation. It has not yet happened, and this looks like a reactive market....so we can only wait and watch for now.
Relax, when things are in order it will open.....the questions are, where will the price go once it opens and at what rate will yhoo track it....assuming there is no other news for yhoo today?
We shall see...they have thrown everything at yhoo to bring it down....an old ceo, the threat of buying aol, even a call from a Senator to investigate uncontrollable foreign companies like baba, bashers who will say anything, and pumpers who have their own clandestine "army" who also sell short while calling long......I wonder what is next?
No, while it is logical that yhoo go over 45 tomorrow, it really is not an issue of "must", as that assumes a rational market that is not subject to manipulation. Unfortunately, there is no guarantee that the market will behave rationally. Hoping for yhoo to go north of 45 tomorrow but watching the price hover around 41.9 on the afternoon before the BABA IPO. Rational?
Well, we certainly have had significant fluctuations today. But, I think I was wrong - as it may very well matter where we close today as it sets the bench mark for pre and post IPO value that some will use (even if they use a different valuation formula than I would use....the net value is what people think it is and what they are willing to pay). Today we got pushed up to 43.34 in the early AM and then dramatically dropped down to under 41.5 in later in the AM before settling in to hover at or about 42.
I just watched it all happen, because I still think there is some room on the upside based on the IPO pricing which is designed to be below BABA value...... I also did not sell (though in hind sight I probably should have lighted my load a bit more....if nothing else to buy back lower or buy BABA tomorrow). In any case, we are now a bit below 42 and tomorrow the IPO happens.
day traders, bashers, and pumpers will be out in ultra-force today. Sometimes the same poster will take on all three personas. Remember your own personal target and objectives. In the end it probably does not matter where yhoo closes today. Good luck tomorrow!!!!
My assumption is that the closing of the books this evening was designed to provide a 24 hour period in which the IPO organizing brokers could sort out the orders and avoid the confusion that occurred with FB. The fact that they feel that they have enough orders 24 hours in advance is indicative of a potentially positive outcome in terms of selling out and post-IPO pricing. IMO, It would also suggest an IPO at or near the upper end of the revised pricing guide. However, a lot can happen in the next 40 hours.
I just hope that the computing systems are robust enough to deal with the volume and the demand to trade shares after the IPO........I hope we do not see the lags, gaps, and breakdowns that occurred during the first day of the FB ipo - that was a mess.
Getting closer to the starting point. Last week there was an indication that the brokers would close the books after the close of trading today. Is that still the plan. If so, when will they announce the final price and how low will investors have to finalize their share orders? The smoother the transaction the better for BABA and YHOO.
Yhoo price includes aspects of Alibaba stake...but probably not the net value of yhoo or the post IPO value of yhoo and yhoo's stake in baba. However, the price is what it is and will not change until folks bid it up or down from here. I think it will go up.
yes, see discussions of value to Alibaba and and Softbank (mostly via acquisition and resale of parts); msft is old news but still relevant, some folks think aapl (but I doubt it). There are lots of advantages for baba and sftby revolving around value benefits via discount related to tax savings. See Eric Jackson's article etc.... For a while I thought yhoo might get bought out, but now I doubt it. Seems like if it were to have happened either of these parties would have been better off offering 35 a share when yhoo was in the 14-16 range. yhoo has a chance to reinvent itself with money from baba....it is a one time chance, and really an excellent one at that - they have the money to transform and the time to do it (no debt, cash in hand, staff under contract, and baba holdings still growing. Not bad for a company that many still consider moribund.
IMO yhoo core and Alibaba IPO value is not fully priced in and yhoo is still undervalued at 42.....Expect to see yhoo higher within three days (probably 2).
I really do not care much what the closing price is today...but, if it drops again I will spend some of my "BABA reserve money" on more yhoo. Looking ahead, I do care what the closing price is yhoo on Thursday and yhoo and baba are on Friday!! Hoping for a strong support for the BABA IPO when it opens!!!
Hope they used some of the cash on hand to buy some a month ago...even a week ago!