Yahoo - Not So Much
Yahoo, well not so much. With Yahoo saying that they think their stock is worth $40, it is a bit like like trying to fob off an abused Rental Car that has had the odometer turned back as brand new one some unsuspecting old lady. If the company is worth that much, then why hasn’t the current management convinced million of stock buyers of that fact?
Do they think that Microsoft is really that stupid? The fact that Yahoo has not been able to capitalize on it’s assets says it all.
This is what I love about Capitalism as a whole!
In the end, both competence and lack thereof are easily seen by all and rewarded accordingly and in this case it is seen by all except Yahoo. While there are always cases of undiscovered value, once they are brought out into the open, fair value is usually obtained for the most part rather quickly. In this case, fair value of what Yahoo has provided the market so far is where it is trading. They have had years to bring it to light as it were
The shine has worn off Yahoo as it is has continually not taken advantage of it assets and capital and before it becomes a footnote in stock lore like Netscape, they need someone to come in and rescuse them from themselves. I think that this is just an issue of egos and not about putting the stockholders and customers first.
I realize that it is tough for them and but they really need to take a long hard look at what they are doing and put the company and all that entails ahead of the own emotions.
If I was Microsoft, I would be buying up shares as we speak and excercise a bear hug if they are not already doing so. Or they can wait as the stock inevitably drifts lower but then again, Yahoo may not be worth rescuing by then.
It is going to be interesting to see how this one plays out. In the meantime, I bet the Boys and Girls over at Google are hoping they wait a good long time.
