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MSFT's Call Option on YHOO

I don't think people gets it. The software & internet business is about imagination and innovation. Msft runs out of tricks because Gates and Ballmar are hitting the big 50's. So is Yhoo. Yang is being pull by the big 40. Age and experience go hand-in hand but go opposite direction with imagination.

Msft, Yhoo went high flying when Gates and Yang were in their early 20's. So are Goog and Facebook. Goog is much younger, it doesn't need Yhoo. It only sits on the sideline watching Yhoo drop dead. Otherwords, new young guys having tricks coming out everyday and the old guys become obsolete. This is why, Goog lures more online ads within 3 years than Yhoo has built in a whole decade.

In software/internet business, there is no such thing as DON'T TEACH OLD DOG NEW TRICKS. Old dog, no tricks, young dog, tricks are plenty. Tell us one new trick that Yhoo has had in the last 6 years.

What about Msft? Msft runs out of tricks too, but at least it has something contrete to sell.

MSFT's Call Option on YHOO

What Yang did was to jack up the earning expectation fictitously in order to convince the shareholders that YHOO worth more than $33. What next? When July comes, Yhoo would probably have to inflat the earning to stop the price from falling.

If Yhoo worth $100B, why didn't the company just say NO WAY in the first place; $37 a share is hardly equate to $100B, or pay $35 to buy back the shares.

After more than 14 years since going public, Yhoo has yet to pay a red cent in dividend, let alone $3 in special dividend. What do you think it's financial situation is? Even Enron paid dividend.

When October comes, Yhoo would fall to $15 and if Msft considers a bid on Yhoo again, $19 would be the price.

On Yahoo/ Microsoft: Jerry Yang Should Be Fired

I am sorry JerryRocks, you don't seem to understand a whole lot about investment. If you have sold your Yahoo on Friday at $29, hold on to your cash and buy them back on Money at $20, you would have a growth of 45%. Sometime down the road, if Yahoo would ever reach $40, you would have $58.50.

Long term growth is fine, but if your investment drops dead, you'd have nothing to grow.

On Yahoo/ Microsoft: Jerry Yang Should Be Fired

The only way that the Yahoo can stop the stock from falling off the cliff is to initiate a $31 stock buy back. It's a big bargain if the stock really worth $40. Tell Yang to put the money where his mouth is.

Don't hold your breathe, Yahoo doesn't have the dought.

On Yahoo/ Microsoft: Jerry Yang Should Be Fired

For LOL, the beating estimate and raise guidance business is a bunch of crap. The only question is, how is the price per share determined? If the estimate would higher the P/E, that means the business is dying. If the estimate would allow the P/E to remain unchanged, that means the business is stagnating. If the estimate would lower the P/E, that means the business is growing. This is not rocket science.

With P/E at 60 and pays no devidend, why doesn't the Motley Fool comment on that?

On Yahoo/ Microsoft: Jerry Yang Should Be Fired

Microsoft's P/E is 16, the stock price is $29. Yahoo's P/E is 60, what do you think the stock price worth? About $12, right? Yahoo can't even affort to pay devidend! How could anybody think the stock worth $40? Who are you kidding? Think about this logically, if the stock worth $40 and if I were Yang, I would waste no time to purchase it at $31.

Microsoft Blinks, For Now

Yahoo will drop to $19. A stock wouldn't worth much at a 60 P/E. Microsoft will stay put, a little jitter, maybe. The final outcome, the Yahoo board would be sued. A couple more quarters down the road, Yahoo is unable to deliverthe finance result as said by Yang. Yang only cooked up a prosper future in order to get more money from Microsoft. Yahoo will fall to $12. Microsoft would devour Yahoo at $20.