What does everyone think about this?
http://pando.com/2014/03/21/if-the-crowd-is-wise-maybe-its-time-someone…
While the valuation for Alibaba is far from scientific; wouldn't this information seem to suggest that Yahoo is significantly undervalued? The fact that net of its stakes in Alibaba/Yahoo Japan, Yahoo could have a negative market value is absurd? A buyout of Yahoo seems incredibly unlikely; however, buying up some Yahoo shares doesn't seem like a terrible idea given this information.
I apologize for the informality of my post, basically jotting down my thoughts, but hopefully my insight is helpful.
I bought YHOO last January when it was at $19 a share. Specifically because it owned 24% of Alibaba. I dislike Yahoo's own business as there have not really been any promising cash cow SBUs, but this was the only way to get exposure to Alibaba as well as the successful Yahoo Japan.
I found the article you shared very informative. I plan on holding until alibaba IPOs and we get a more clear picture of where Yahoo stands. What the company does with its proceeds from sale of a portion of Alibaba will dictate the next move. Personally I'd prefer a dividend from the money, but thats just me.
I'm still gauging the price this summer when Alibaba IPOs, but my analysis has put YHOO at between $42-$46 come summer time.
As far as Alibaba valuation goes, I'm putting it at $160B, but if the media does its job to make it look bigger than life, that could push it to $180~.
At the current price, I'd say you've got a very soft cushion with Alibaba and Yhoo Japan as the article states.
I'll take this 1 level further with regard to Alibaba; China is currently trying to internationalize the RMB and with that, more free market will enter China. With low wage jobs being outsourced from China to places like Vietnam, less regulation on the RMB currency, and a transition into a service economy (and a whole list of other things), I feel that this decade the RMB will see dramatic appreciation in value contrary to China's neighbors in Japan. At the same time Alibaba is trying to go international, and as this business model (Ebay? Not really) has never really been done on such a grand scale, Alibaba has early mover advantage. Not to mention that Alibaba has Alipay, I can't remember if Jack Ma owns that personally or if it is within Alibaba too, maybe someone else knows?
Although it sounds like a great scenario for Alibaba, there is a concern with the credit bubble in China so it is important to get the big picture.
Every once in a while there is a company that revolutionizing how business is done (In the past microsoft, apple) and Alibaba is on the forefront of changing it again.
New Yahoo CEO, go long? (Originally Posted: 01/04/2012)
Yahoo! Inc. Just announced there new CEO today, going with now former PayPal president Scott Thompson. The question remains though, is this move enough to warrant a long position in Yahoo? To be fair to Yahoo it has been a successful internet company for a number of years beating out many of its competitors and surviving the Google onslaught that still seems to be trying to take over the internet. However, Yahoo has had a number of poor decisions that have shaken investor confidence, mostly in the board of directors. They have turned down buyout offers from Microsoft, watched as revenues have fallen 20% from 2009, and completely missed the boat in the mobile phone/app market. The board also keeps the bloated Yahoo structure when many people agree that it could easily "cut 75% of its workforce with no meaningful impact on revenues". I mean I don't like to fire people but having four times the amount of people you need seems pretty excessive.
Yet there is still hope for Yahoo. It remains an attractive buyout target from either a PE firm or a revamped deal with Microsoft. Also, the new CEO Thompson could have easily stayed with PayPal and made a ton of money so there has to be a reason he decided to pass that up (they have yet to release the numbers for his compensation so it could be more at Yahoo!). And despite everything the board has done, yahoo is still standing with a number of good assets here and in asia including the household name.
So what do you think monkeys? Will you Yahoo?
how can you quantitatively assess the performance / impact of a new CEO who has worked at the company for 1 day? The hiring of a new CEO in itself isn't enough information to make any kind of decision.
Your analysis is correct in that it remains a takeover target. However, that is something that is quickly dissipating and Yahoo is at a dangerous point. One of the few (if not the only) thing that makes it a takeover target is the large user base (as opposed to a large number of advertisers, patents, mobile strategy, etc - of which Yahoo has nothing of significant value). So 2012 will be a key year for them. If Q2 passes with no suitors on the horizon, I would be short on it - users are only going to stay with a dead horse for so long . . .
Yahoo is in serious decline, it is a joke, CEOs aren't going to fix that.
yahoo should become a chocolaty milk company to compete with trumoo
In my opinion there are only two good parts in the Yahoo business; Rivals and Finance. Their search algo's are worse than Altavista, mail service is only used by noobs and foreigners and their news stream are shit.
Trim the fat and turn their Yahoo! Video into something that can compete with Netflix.
Here are the facts: Yahoo still is one of the top sites that is visited on the web= advertising money. 2. I presume Alibaba is going to buy the Asian sector of Yahoo because they hired a lobbying firm, they wouldn't go through that to just b/s. 3. The new CEO knows finances and is able to turn this company around. 4. In 2010 annual report, they expanded their assets and decreased liabilities and receivables were up considerably. In 2008, when their current ratio was considerable the same, they were trading about 28-30. And 2008 was a time when the market was at 7000-8000.
Today, YHOO is trading about 23, I'm going long until maybe 26-27. I have faith in the CEO.
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