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Kohalza

Buying YHOO

Started Mar 25 at 10:54 ET (By Kohalza)

Symbols: YHOO

Microsoft likely to raise thier offer for Yahoo. If that happens, you know what will happen to share value...

4 Comments

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blacktuna

blacktuna

Mar 25 at 3:30 ET

I can't agree with that, amigo..
YHOO was trading at $19 before the MS bid and hovering at $28 since..
If Microsoft raise the bid by even 20% than that's your upside, but the alternative = no deal, will send YHOO screaming down to fair value at $19, maybe even less leaving you with a 50% loss... and lets look at the news on Yahoo:

Yahoo delays board election to resist Microsoft takeover
Seattle Post Intelligencer - Mar 5, 2008

Yahoo faces 7 shareholder lawsuits over handling of Microsoft bid
San Jose Mercury News - Feb 28, 2008

Yahoo says Microsoft bid proving major distraction Reuters

Do you really want Yahoo and Microsoft management to be in charge of delivering you with value?

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Kohalza

Kohalza

Mar 26 at 4:48 ET

blacktuna, I don't think the market is not as sophisticated as you think. Doesn't matter for how much YHOO is trading now, if a new Microsoft-Yahoo merger is on the table the stock will rise. Seems to me like one of those basic investment rules...

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blacktuna

blacktuna

Mar 26 at 12:14 ET

true... but BECAUSE the market is efficiant, if the deal falls through.. you're gong to be lighter on the wallet side..

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