I felt good about buying shares at 46 last Friday. Then the beating came and I wanted to cry. Now I'm in the green. This market is nuts.
Likely just a 1 day event due to earnings. If BABA is up 2% tomorrow, YHOO will probably be up 3%. It'll eventually correct itself.
The tax free deal will be approved. The IRS risks a class action lawsuit if they change the rules in the middle of the game. What Yahoo filed is legal within today's tax code and shareholders bought millions of shares based on the tax free spinoff. I'd be the lead plaintiff if asked. The IRS is already in hot water over numerous other violations. I doubt they want another lawsuit against them. Anyone who thinks it doesn't go through is just plain stupid. I've been loading up with every extra dollar I have.
You don't understand? How sad. Look at YHOO's stock price when the MSFT bid was made. It jumped to the bid price and anyone could have sold shares on the open market before the bid was rejected.
We don't need a deal to be approved. We only need the offer. The share price on the open market will go toward the offer price which would allow us to sell without having to wait for it to be approved. Your only risk in selling at that point would be if you sold prior to a higher competing offer being made. Even still, you'd probably make a nice profit on the first offer.
With YHOO at 29, I figure that puts BABA in the area of 60. Either you're predicting BABA to trade at a forward P/E of 16 or you think BABA will not earn nearly as much as expected.
The move was caused by POT's bid for K&S. The ag industry is welcoming consolidation. MOS could be next, who knows.