If you are following the news, you should come to the conclusion that YHOO's sell deal should be very close. I believe it should be by the end of 2011 or max by Jan 2012. The deal price should be between $20-$25 (much less than $33 offer of Microsoft in 2008). That makes trading YHOO very interesting. If you are patient and looking for a possible great return invest in YHOO. Possible good trades: By the shares Sell PUT 16 Risk reversal
i can't think of a worse company than YHOO. There stock price has not moved very much in 10 years. Terrible management and products. No creativity. Even their email, which I have used for 12 years or more, is crap compared to Gmail. Always getting notices from yahoo to change my password, and notices about spam and scam. Bunch of morons running that company imho.
That doesn't mean the company doesnt have value. Their Asian stakes alone are worth $12/share. But I agree, this isn't going for a huge premium.
Yahoo co-founder Jerry Yang resigns from its board Jerry Yang, the co-founder of Yahoo!, has resigned from its board. Mr Yang founded the online company in 1995 with David Filo and was its chief executive from June 2007 until January 2009. His resignation comes two weeks after the company hired former PayPal executive Scott Thomson to be its new chief executive. Mr Yang annoyed some shareholders by turning down a $47.5bn (£31bn) takeover offer from Microsoft in 2008. The company's current market value is about $20bn. Mr Yang has also resigned from the boards of Yahoo Japan and Alibaba Group and said in a statement: "The time has come for me to pursue other interests outside of Yahoo!". He also expressed support for the company's current management. "I am enthusiastic about the appointment of Scott Thompson as Chief Executive Officer and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future," he said. Yahoo! shares rose 3.4% in after-hours trading. Some analysts had seen Mr Yang as an impediment to the sale or restructuring of the business. "This is clearly a positive. It provides a more objective and unemotional approach to strategic alternatives," said Brett Harriss at Gabello & Co. ------------- Another company down the drain. Having the founders run a company adds great value as they know the structure and they had the initial vision to build the company from the ground up. Yahoo will turn into another giant run by "company men", people who have no vision but fit very nicely into the corporate system. "Unemotional approach" is the destroyer and not the innovator of companies.
Jerry Yang built a great company. He created billions of dollars of shareholder wealth. He sold control of the company in exchange for billions of dollars of personal wealth. He then continued to control a company that was no longer entirely his anymore. He then destroyed billions of dollars of shareholder value with his "emotional approach." And he's about to do it again.
If you really think the deal price will be $20+ then you should be buying calls instead of selling puts.
Actually the price held fine in comparison, I suppose you blame him for the 2008 credit crisis as well. His vision was about long-term and not about the quick buck from the takeover, he would've benefited himself from the takeover, as he still held shares.
YHOO stock was worth $35 in 2008. It was worth that much because there was a bid there. Now it's worth $16 only because there is spec that it will be taken out. A 50% cut that should probably be a 70% cut. The market didn't do that. His competitors have HIGHER stock prices than 2008. The company failed in it's strategy. That's probably not his solely his fault. But he had a $35 bid that he let walk away. That is solely his fault. There were rumors that he was high fiving his friends when Microsoft walked away.
I believe his resigning was planned in BOD. Yes he made a mistake not accepting MSFT $35 bit and because of that he could not justify accepting a possible $30 deal so he agreed to resign so YHOO can put a deal together. This way, Jerry will be happy but not be blamed. Investors will be happy to see a deal gone through and BOD will also be happy.
I had 31400 shares and just by going up 50 cents, I made $16000 in a day. I believe buying YHOO now is the surest way to make money. Just buy the shares and sell call $17 for Feb if you want to reduce your cost by 30 cents. If not just keep the shares. No way YHOO will not be sold. No way YHOO's deal will be less than $18. Where else you can get this sure profit?