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January 24, 2012
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I have been going thru Yahoo's ( http://www.peopleandpicks.com/ticker/YHOO ) Quarterly reports and the 2010 Annual report. Microsoft (MSFT Zacks Rank 3 - HOLD), in addition to monies Yahoo, (YHOO Zacks Rank 3 - HOLD), can earn from Microsoft as part of it's "Search Agreement", Microsoft, (http://www.peopleandpicks.com/ticker/MSFT) is picking up the tab for millions of dollars in expenses. Based on my own analysis, Yahoo has the potential to beat analyst expectations of 24c by 10 to 13%. I therefore expect Yahoo to SURPRISE to the upside when it reports after today's closing bell.around 4:05 PM with a conference call to follow at 5:00 PM EST. . In addition, per the 2010 Annual report, Yahoo had a poison pill anti takeover provision that was going to be allowed to expire early in 2011. Also per the 2010 Annual report: Yahoo net income for the 2008 year end included a non-cash gain of $401 million, net of tax, related to Alibaba Group's initial public offering of Alibaba.com Limited.
I view that Mr. Market has substantially undervalued Yahoo assets ... with my intrinsic value estimate of Yahoo about $24 per share.
Like Mr. Harvey used to say, " And now, the rest of the story."
... more to follow ....
