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Turnaround Or Not, Yahoo Shares A Bargain
- YHOO is undervalued by 17% to 45% using a sum-of-the-parts valuation methodology.
- Yahoo!'s core operations would be worth significantly more as a standalone entity than its stub value as a conglomerate entity of Yahoo! Inc.
- A $7.5 to $10 billion USD cash infusion from the sale of 208 million Alibaba shares during the upcoming IPO should catalyze an upside correction.
- YHOO is undervalued today. Cash infusions and buybacks should unlock shareholder value. However, a meaningful turnaround of Yahoo!'s core operating businesses is necessary to create value over the long term.
- Going long YHOO is a solid trade with asymmetric return potential over the short term.
Shareholder Rejection Of Yongye's Buyout Offer: Boon Or Boondoggle?
- On Wednesday, 19 February, The Street reported that Yongye had postponed the vote on the buyout, ostensibly to garner more shareholder support.
- On Wednesday, 5 March, Yongye announced that the going private proposal had not been approved by shareholders causing to shares to plunge nearly 20% from $6.57 to $5.31.
- The recent decline in share price may provide the acquiring group a window of opportunity to aquire a majority stake in YONG at a discount to its rejected offer price.
- Yongye: Unique Risk-Arbitrage Opportunity For An Undervalued Firm
- Kingold Is Precious: Shares Up 40% In The Week Following Downgrade By Analysts