Jeremy Raper
Long/short equity, deep value, special situations, growth at reasonable price

What Softbank's Stock Price Tell Us About Alibaba's Valuation (And Why It Makes Yahoo Look Even Cheaper)

Yahoo (NASDAQ:YHOO) is currently my largest investment on the long side, but I only built my position after following a fairly tortuous route: by trade I tend to concentrate on Japanese companies, and so I had built a position in Softbank (OTCPK:SFTBY) initially as means to play Alibaba (NYSE:BABA) related upside. I originally thought that Softbank's larger stake (~35%, with no obligation to sell), along with better management, would lead to more upside into the IPO. However, once you really break down Softbank's sum-of-the-parts, it's pretty clear that YHOO is a glaringly cheaper play on Alibaba, and has much more sensitivity to Alibaba pricing upside.

So, in this article I'm going to run through...

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