YHOO trade going into tommorow

I suggest that the biggest factor is being missed. What has emerged from the Mircrosoft bid, now cancelled, is that Yahoo by its disclosures is a weak stock. The Yahoo cupboard is bare and hope is being relied upon for the future. They appear to have some desperate ideas on pursuing options for other link-ups. In other words whether Yahoo plunges or not on Monday, its a 'sell' stock. But that is more a fundamentalist assessment.
 
As in all acquisition plays it is the value the acquirer puts on the acquistion. In other words Microsoft not only wants the Yahoo share of internet advertising, it wants to aggressively enlarge that share. That means that the value of Yahoo staying on its own is much smaller.
 
Quote from snowhite:

The reward far outweighed the risk. You should have picked up some.

disclosure- long 50 22.5 puts
More...

lol you think? which month did you get?

and you don't need to put that disclosure....you could have just put "bragging" lol. it's cool man...i would be bragging too. :D

i hope yhoo opens at 20 and drops from there for you. nice trade.
 
Alibaba Shares Decline After Microsoft Abandons Bid for Yahoo

By Mark Lee

May 5 (Bloomberg) -- Alibaba.com Ltd., China's biggest online commerce company, fell in Hong Kong trading on speculation that the withdrawal of Microsoft Corp.'s offer to buy Yahoo! Inc. may affect demand for Internet stocks.

Alibaba.com, whose parent company is 39 percent-owned by Yahoo, fell 4.7 percent to HK$15.44 as of 10:25 a.m. on Hong Kong's stock exchange, the biggest decline since April 25. The benchmark Hang Seng Index rose 0.1 percent.

``Microsoft's bid to buy Yahoo had been positive for Internet companies in general, so the withdrawal of the offer may be negative in the short term,'' said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. ``The impact on Alibaba may be more pronounced because of Yahoo's holdings.''

Microsoft, the world's biggest software maker, said on May 3 that it abandoned its bid for Yahoo after failing to agree on a price. The Redmond, Washington-based software maker, which in February offered $31 a share for Yahoo, said it raised its bid to $33 a share. Yahoo demanded $37 per share, Microsoft said.

Alibaba.com shares jumped 14 percent on March 19 after the Wall Street Journal reported that Chinese parent Alibaba.com Corp. was in talks to buy back Yahoo's stake to ensure its management independence in case Microsoft succeeded in its acquisition.

To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

Last Updated: May 4, 2008 22:42 EDT
 
You must log in or register to reply here.
Back
Top