At today's price it's worth $34 B less about $10 B in built in taxes for a net of $24 B. You can wish it up all you want but the math doesn't lie.
Baba is going to get much worse before it gets better. Don't you know those with locked up shares are chomping at the bit to sell in light of the sec and other news. Will take yhoo with it.
Next we will be seeing "the Coldone sold" messages, retroactively, at higher prices as yhoo falls because of baba's decline.
I say that's the time to buy Yhoo. But I think Baba has a ways to fall before it turns around and several months to do it.
That wishful thinking and a dime will leave you $2 short on a cup of coffee. With what has happened and the lockup expiring in march how can you not see this is headed south? My guess is at least $75 and probably much lower. Fall in love with a stock and she'll break your heart.
And Baba may be $105 by Spinco time but I think we see Baba $75 before we see Baba $105 again.
At Baba $105 Yhoo's baba shares are worth $40 B and at Baba $75, Yhoo's baba shares are worth $28.5 B. It is what it is, the math doesn't lie.
The time to buy yhoo is after the baba lockup expires next month. Wait for babas decline then buy.
Not short and I'm looking to get back into Yhoo but I think you have to be realistic. I still think baba is headed south when the March lockup expires and it's going to take yhoo with it. I'm looking to get back into yhoo at the $35 to $36 level.
Add another $8 B for the rest of the taxes that are built in and you get a core value of $9.73 B using your numbers. I've seen the articles suggesting that Spinco will trade at a 10% discount to Baba stock it holds and I think that is nuts. It will trade closer to a 35% discount to take into account the tax.
They did not fully disclose in their S-1. That is a cardianal sin and will be a very big deal. going much lower.
Call me what you want but get your head out of the sand. The S-1 non disclosures are a cardinal sin that won't be forgiven. Wait and see. If you don't think this is a big deal you are the dopey one.
Bad move. The non disclosures in their S-1 are just starting to cause problems. It's going to get much worse. If I owned baba i would sell now and walk away.
Agree. I'm not short but the non disclosure issue are huge. Will create an almost strict liability and the big investors will want their money back. And they will get it. Literally life or death to baba as a public company.
Going much lower. This counterfeiting is a big deal but non disclosure in the S-1 is huge. The big boys will use the non disclosure to ge their money back. Wouldn't surprise me if this lead to a rescission of the IPO offering.
Now, subtract $10 to $12 Billion in taxes on the baba shares and using your numbers you have $45 to $47. Probably need to subtract taxes on Yhoo Japan too.