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YHOO - the bull case
- Thread starter xxxskier
- Start date
some trading buddies of mine in NYC said the buzz on the street was that yhoo would add about 6 points if Aliababa went up 50% on the first trading day...the buzz was when yhoo was around 26. so, that brings it up 32. in Hong Kong right now, as i write this (i'm in California) Alibaba is trading at about 35, which is a 165% increase. i'll be conservative and say it closes its first day with just a 100% gain. that would mean the street expects another 6 points on top of 32...brings us up to 37/38 area later this week if the overall market cooperates.
here we go......
from Barron's Tech Trader Daily:
http://blogs.barrons.com/techtrader...esday-rally-in-yahoo-shares/?mod=yahoobarrons
November 6, 2007, 1:56 am
Huge Surge In Alibaba.com Stock Price Following IPO Could Spur Tuesday Rally In Yahoo Shares
Posted by Eric Savitz
Yahoo (YHOO) seems likely to benefit Tuesday from a surge of buying in Hong Kong for shares of Alibaba.com, which started trading over night after pricing its IPO last week. Alibaba.com is being spun off from Alibaba Group, a holding company which owns a number of Chinese Internet properties. Yahoo owns a 39% stake in the parent company, which maintains a 75% stake in the spinoff, as well as a a direct stake of 1.2%.
As I write this post late Monday night in California, in Hong Kong Alibaba.com shares are trading at 35.75 Hong Kong dollars, which is up 22.25, or 165%. At that price, Reuters notes, the company has a market cap of $23.2 billion. So, letâs see. Alibaba Group hold a 75% stake in Alibaba.com, which is worth $17.4 billion. Yahoo owns 39% of Alibaba Group, which puts the value of their share at $6.8 billion. The direct-owned 1.2% stake in worth about $278 million. That puts the total value of Yahooâs interest in Alibaba.com at north of $7 billion Thatâs about 16.7% of Yahooâs current $42 billion valuation.
On Monday, Yahoo shares rose 25 cents to $31.36.
from Barron's Tech Trader Daily:
http://blogs.barrons.com/techtrader...esday-rally-in-yahoo-shares/?mod=yahoobarrons
November 6, 2007, 1:56 am
Huge Surge In Alibaba.com Stock Price Following IPO Could Spur Tuesday Rally In Yahoo Shares
Posted by Eric Savitz
Yahoo (YHOO) seems likely to benefit Tuesday from a surge of buying in Hong Kong for shares of Alibaba.com, which started trading over night after pricing its IPO last week. Alibaba.com is being spun off from Alibaba Group, a holding company which owns a number of Chinese Internet properties. Yahoo owns a 39% stake in the parent company, which maintains a 75% stake in the spinoff, as well as a a direct stake of 1.2%.
As I write this post late Monday night in California, in Hong Kong Alibaba.com shares are trading at 35.75 Hong Kong dollars, which is up 22.25, or 165%. At that price, Reuters notes, the company has a market cap of $23.2 billion. So, letâs see. Alibaba Group hold a 75% stake in Alibaba.com, which is worth $17.4 billion. Yahoo owns 39% of Alibaba Group, which puts the value of their share at $6.8 billion. The direct-owned 1.2% stake in worth about $278 million. That puts the total value of Yahooâs interest in Alibaba.com at north of $7 billion Thatâs about 16.7% of Yahooâs current $42 billion valuation.
On Monday, Yahoo shares rose 25 cents to $31.36.
Hook, line and sinker for those chasing YHOO this morning into Alibaba hype.
So where does YHOO go from here? Was today's decline a result of the politician's meddling or is this the start of a longer term trend (i.e. start of flipping after the alibaba IPO)?