This train wreck is going to be interesting. Jerry just sent out the following email. Here is part of what he says.
we believe microsoft’s proposal substantially undervalues yahoo!—including our highly recognizable global brand, large worldwide audience, significant recent investments in advertising platforms, future growth prospects, our ability to generate free cash flow and our earnings potential as well as substantial unconsolidated investments (like alibaba and yahoo! japan).
Well it looks like Yahoo is talking to AOL.
It is understood that Yahoo! and its team of advisers from Goldman Sachs and Lehman Brothers, the US investment banks, have spent the past week evaluating possible tie-ups with media and technology firms that would save it from being swallowed by Microsoft.
It is also understood that one option being explored is to restart merger talks with AOL, the online business owned by Time Warner.
You have got to be kidding me. Is Microsoft that bad? According to the attitudes of Yahoo it seems to be. It is this sort of thinking that has me very pessimistic on Yahoo. When personal decisions get in the way of business decisions then you know something is very wrong.
Jason brought up a good point:
BTW, those Fast Money guys don’t seem as concerned about disclosing their positions or trading under altered rules like Jim Cramer is.
I wonder why that is.
It’s tough though. If you disclose, your trying to pump/dump stocks. If you don’t, you’re hiding stuff.
I think the reason why the Fast Money people don’t mention all of their holdings is because they are traders/investors. It’s like Buffett where he only mentions things after they have occurred.
Well it looks like Yahoo rejected the deal. Here is what the board said.
Quoting sources familiar with the situation, the Journal reports that Yahoo’s board feels the offer of $31 per share “massively undervalues” the company. A letter spelling out the position is expected to be sent Monday. Yahoo also expressed concern that Microsoft’s offer does not account for risks to Yahoo should the deal be overturned by regulators.
The Journal source said the company would be unwilling to consider an offer below $40 per share, which would represent a $12 billion increase over Microsoft’s original $44.6 billion bid. It is unclear if Microsoft would be willing to increase its bid by such a significant amount.
So I thought, ok let’s look at the numbers and see what they say from a valuation perspective.
The indices in Europe, and America are down around 4 to 5%, and the question is if we hit bottom. First let’s look at the overall picture for the past year.
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Throughout the years I have invested and worked for financial institutions. On the weekend I had a long talk with my wife on my future direction. The future is as follows: Long Term Goal: Become a fund manager of my own fund. This goal is a long term goal because I need to become fully (more…)
I don’t like this merger one bit because it is a waste of money and resources. I am probably the only one saying this. Here is why I think its a dud.
What are the sales number of iPhones in Germany since November 9….
70,000…
How about France?
70,000 as well…
As I pointed out in an earlier blog entry when people talk about Apple rebounding, I personally feel it is more hope related than actual numbers.
In a previous blog entry I commented on how the Fed reacted to an event that might have been a non-event. I commented in that blog entry on how the recent market drop was probably due to the unwinding of a rogue trader at a French bank. It seems that the 7.9 billion of futures was sold by the bank at the beginning of this week causing a massive market upheaval.
Well according to Jim Cramer, yes. I say probably no. Or let me rephrase it, a temporary bottom. I want to show you my indicator for a major index that goes back to the second world war.
