New York, New York (PressExposure) January 30, 2012 -- As reported in popular financial newsletter Profit Confidential, shares in Yahoo! Inc. moved up on news that founder Jerry Yang had resigned from the Board of Directors and all other positions with the firm. Many long-time investors are wondering if this clears the path for a sale of the company possibly to Microsoft, which did offer to buy the firm in 2008 for $31.00 a share. In a recent article, Profit Confidential addressed this possibility.
"Something has to be done. This is why new management was brought in and I don't think CEO Scott Thompson will stand and watch the company slide into oblivion without some drastic action," says Sasha Cekerevac, contributor to Profit Confidential.
Cekerevac's recent Profit Confidential article looked at the pieces of Yahoo! "Yahoo! has a 40% stake in Alibaba Group Holding Ltd. and a 35% stake in Yahoo! Japan. These are very valuable entities," says Cekerevac. "Some estimates have these pieces valued together in the $18.0-billion range. The current market value of Yahoo! itself is $20.0 billion, which includes these pieces and $2.0 billion in cash on hand, leaving the core business essentially free."
With 700 hundred million users, Yahoo! has significant market share and Cekerevac thinks that a firm like Microsoft might want to add these pieces to their existing business model. "Microsoft search engines have a market share in Japan of approximately 1.7%, compared to over 51% for Yahoo! Japan."
"Microsoft has a ton of cash on hand and needs to find growth somewhere," says Cekerevac. He believes Internet-related stocks are going to have some sort of shake-up within the next year.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six