Its sad that on the weekend we remember those who gave their lives for us, yahoo continues bashing the person we elected to represent us, create jobs for us, and protect us from those who want to kill us. yahoo is sick.
"Based on our extensive expert conversations, we believe there are precedent tax-efficient structures that could reasonably be pursued."
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UBS raises Yahoo price target to $58 from $50.
Yahoo could find a tax-efficient way to monetize its stake in Alibaba Group after its deal with Verizon Communications closes in June, says UBS, which on Wednesday hiked its price target on Yahoo to $58.
"We anticipate that the Altaba management will squarely focus on maximizing the tax efficiency of any disposal of its Alibaba and Yahoo Japan stakes post the core sale," Sheridan said in a report. "Based on our extensive expert conversations, we believe there are precedent tax-efficient structures that could reasonably be pursued."
"The possibility of a federal tax cut provides an additional option for tax efficiency," Sheridan said.
when Yahoo is sold, are we getting cash too from the core?
At over $50 a share on the back of BABA I hope Verizon will fix this garbage site. Yahoo is a great informational site but to type a message, to wait for ads to load and to stay on page one is on is real work. Marrisa you left this site shambles but enjoy your $186 million parachute.
OK, who wants to tackle this one:
Now here's something from the prospectus that just caught my eye, page Annex 1-78. (I'm surprised I missed it before) ______________________... Ownership of the Fund’s Common Stock Distributions Distributions by the Fund of cash or property in respect of the Fund’s common stock will be treated as dividends for U.S. federal income tax purposes to the extent paid from the Fund’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Any such dividends will be eligible for the dividends-received deduction if received by an otherwise qualifying corporate holder that meets the holding period and other requirements for the dividends-received deduction. >>>>Dividends paid by the Fund to certain non-corporate holders of the Fund’s common stock (including individuals) will be eligible for U.S. federal income taxation at the rates generally applicable to long-term capital gains for individuals; provided that the holder receiving the dividend satisfies applicable holding period and other requirements<<&l... If the amount of a Fund distribution exceeds the Fund’s current and accumulated earnings and profits, such excess will be treated first as a tax-free return of capital to the extent of the holder’s adjusted tax basis in the Fund’s Common Stock, with any remaining amount taxed as capital gain. Any such capital gain will be long-term capital gain if the holder receiving the distribution has a holding period in the applicable shares of the Fund’s common stock of more than one (1) year. Long-term capital gains of certain non-corporate holders of the Fund’s common stock (including individuals) are generally subject to U.S. federal income taxation at reduced maximum rates. ______________________... Forget that part about how corporations would report those dividends Look at the >>pointed parts<< where it talks about " taxation at the rates generally applicable to long-term capital gains for individuals" A few msgs back I made the point about distributions from "accumulated earnings & profits" would be taxable, BUT as ordinary dividends. NOT CAPITAL GAINS AS STATED ABOVE. Now if that's a ruliing that applies to AABA after the change, that's a HUGE difference if all of the "accumulated earnings & profits" can be returned to the shareholders as capital gain and not ordinary dividends. And if such a capital gain distribution was made (wiping out all of the "accumulated earnings & profits) and THEN the shares of YJ got sold, although AABA would pay tax on the gains, the after-tax gains could then be distributed to the shareholders as LTCG distributions. One stickler to this argument: >Any such capital gain will be long-term capital gain if the holder receiving the distribution has a holding period in the applicable shares of the Fund’s common stock of more than one (1) year.> "More than one year" just for holding the AABA shs or for the YHOO shares? IOW, would YHOO shareholders have a carry-over for the years they held shs before they got changed to AABA? Confusing?? You betcha. I'd like to hear some counter-arguments and I'm not afraid to use the words "I WAS WRONG".
Blake, the other day you replied to me with this:
"Peb. I am no tax lawyer, but If BABA can have 1% ownership then why not 100%? If necessary, couldn't they just remove the RIC status? I think the RIC status is mostly a formality. It does not buy us much. "
Try the following link and tell me if you think that precludes the possibility BABA or some fund (even SFTB's "Vision Fund") buying out AABA.
P.S. I wish they'd be more specific with "RIC" as to whether they're talking "regulated" or "registered". They intermix them too much,
Section 12(d)(1)(A) of the 1940 Act places the following limits on investments by investment funds in any registered investment company. Specifically, a fund is prohibited from: acquiring more ...
How goes the thinking promoting selling Yahoo shares now or waiting to become AABA shares later???
Two weeks and three days until the shareholder vote, and cannot come soon enough.
YHOO Value Today Company...............Market Cap...............Value Yahoo Japan.....$24,560,000,000......$8,718,800,000 Alibaba............$315,620,000,000....$47,343,000,000 YHOO Market Cap...........................$56,061,800,000 YHOO 954 M shares........................................$58.10 This does NOT include $11.3 BILLION in CASH or $1Billion in patents and Real Estate. YHOO has an upside of 20% from its price today YHOO TOTAL Market Capitalization $67,481,800,000
I'm new to investing and am very confused on the Yahoo buy back versus keeping the stock. I'm thinking it might be better to keep the stock but is there a down side I'm not seeing? Please let me know what you guys think that are more experienced than me. Thanks.
Based on what I have seen in the options market the past few days you can expect pretty good volatility between now and June 23rd options expiration.
To sell my shares or not in the buyback? That is the question.
Our expert panel PEB and BLAKE , with more useless posts for YAHOO shareholders.
It was just a few wks ago when YHOO was sitting in the 46-48 range and we had people here looking for share buybacks as a return to the shareholders.
If they're still holding now with the prices in the 50's, I can't imagine why they would still be holding onto shares they wanted YHOO to buy back from them.
will yahoo finally fix itself when bought?
UBS: Yahoo! Poised to Benefit from Alibaba Stake
Verizon struck a deal to acquire Yahoo! last July. However, not part of that deal is Yahoo's 15% stake in Alibaba as well as a 35% interest in Yahoo! Japan.
After the Verizon deal closes, Yahoo! will be renamed Altaba, a holding firm.
UBS analyst Eric Sheridan has now raised his price target on Yahoo!'s stock to $58 from $50 on the basis that Altaba management will "squarely focus" on Alibaba.
"We anticipate that the Altaba management will squarely focus on maximizing the tax efficiency of any disposal of its Alibaba and Yahoo Japan stakes post the core sale," Sheridan noted. "Based on our extensive expert conversations, we believe there are precedent tax-efficient structures that could reasonably be pursued."
Over the last 2 years Yahoo has been a BABA tracking stock, but hasn't done as well. Over the last 6 months BABA was up 32%, while Yahoo was up 23%, over the last year BABA was up 57%, while Yahoo was up 37%, over the last 2 years BABA was up 32%, while Yahoo was up 17%. Not bad returns on Yahoo, but a straight BABA buy was the better investment.