Jim Cramer's Three Ways to Win with Yahoo!
This came from yesterday's TheStreet.com article by Jim Cramer with his take on Yahoo! after this past week.
Reluctantly, with full recognition of their own incompetence, it is time to buy Yahoo! (YHOO - Cramer's Take - Stockpickr - Rating) again -- if only for a trade back to $30.
Hear me out on this.
First, there are two people at the company who are not incompetent bozos: Jerry Yang and David Filo. These are the founders. I believe they must have a degree of pride.
I know that they have been told that the problems at the company were related to a couple of underlings who were messing up. They were all fired. It turns out that the problems had little to do with these underlings at all. The problems were in the stars: Terry Semel and Susan Decker.
Yang and Filo can fire them and see the stock back up at $30, when it can be sold.
Second, the aggressive, emotional selling of this week is simply too panicky. The stock doesn't belong at $32. It also doesn't belong at $27, given the potential, Google (GOOG - Cramer's Take - Stockpickr - Rating)-wise, to ever get it right and the scarcity of Net properties.
Finally, while the company is very expensive, once again the expectations have been washed out of the stock, just as when it was at $23.
Worth it to start buying this hated monster on the "three ways to win" theory.
0 comments:
Post a Comment