Couldn't agree more. BABA was up $5.40. Yahoo owns 383 million shares of BABA and has 944 million of its own shares outstanding. If you do the math, just based on the BABA surge, YHOO should naturally go up $2.19 per share, almost exactly what it did go up.
Jeezus, can't anybody in America write anymore? Maxx, did you graduate from the third grade?
There should be no comma after the word "integrity" in your first sentence. The word "whichever" is and always has been one word, not two. Finally, if you're going to talk about something being "third rate" -- other than your writing ability -- you might try to recall that it's a hyphenated phrase.
I don't often pull the grammar card, but, honest to goodness, if you want your thoughts to be respected, then at least try to make it seem as if you are an educated person.
Tim, I have to disagree. I don't think the current deflated price of YHOO shares is due to uncertainty as to the amount of the discounted price that Alibaba would pay for Spinco. I think it's due to the market's uncertainty as to whether Alibaba will buy Spinco at all.
I don't think that eventuality is a certainty or even close to a certainty. It's a possibility. It makes sense from certain perspectives. But it's purely speculative. If it was more than that, the current price of YHOO stock would be much much higher, given the huge amount of the tax avoidance -- even if Alibaba paid a discounted price.
But in no way is the purchase itself a certainty. I wish it was. I'm holding a ton of YHOO stock and, although I'm hopeful that it will pay off handsomely at some point in time, I'll continue to be nervous until it actually does become certain that Spinco actually will be able to avoid taxes on the sale of BABA shares.
I agree 100%. The alternative is to believe that: (1) Yahoo core has either a zero or negative value, which makes no sense in light of the historical earnings of this company; and (2) Investors believe that, when Spinco sells its BABA shares, it won't have to pay any taxes -- which also makes no sense unless and until someone explains to the world how those taxes are to be avoided (for instance, a BABA repurchase of its own stock).
Clearly, the price of YHOO continues to be based on a full tax deduction for BABA (and also, I believe, for Y-Japan).
I don't see why such a rumor would cause YHOO shares to drop in price anyway, since the stock was already valued as if the BABA and Y-Japan stakes would be sold and fully taxed. Makes no sense whatsoever.