Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yahoo! Inc. (YHOO) Has a Winning Ticket but Doesn’t Know When the Lottery Will Be

So, we all are expecting it to happen and some of us already have an idea regarding the proceedings, but there’s little information about when it will take place. Alibaba is going for an Initial Public Offering (IPO), probably one of the greatest IPOs of all time and Charles Sizemore, CIO of Sizemore Capital Management, during an interview on CNBC expressed his views regarding the company’s stock. It might rise 20% to 30% right after the IPO. This move will benefit Yahoo! Inc. (NASDAQ:YHOO), which currently owns about 24% of the e-commerce firm. However, this boost might not be sustainable due to the high amounts at play.

Yahoo! Inc. (NASDAQ:YHOO)

“If you look at their offering price, it puts them roughly at a market cap of $165 billion, depending on what range of the estimate you’re looking at. That puts it bigger than Amazon.com, out of the gate, that is a very very large company […],” said Mr. Sizemore.

It is believed that Alibaba might repeat Facebook Inc (NASDAQ:FB)’s story, which saw the price spike sharply then fell afterwards. There might be a possibility in which the Chinese giant stretches out, plays right and manages to sustain a huge post IPO growth, but it will be difficult.

“[…] It’s a great company and there’s everything good about the company. I’m just questioning the valuation of the stock so I’m sitting on the sidelines and I am going to wait and see how the dust settles here […],” added Charles Sizemore.

If Alibaba manages to pump its value, Yahoo! Inc. (NASDAQ:YHOO) will further grow in price, which has been moving upwards from mid July. The date that the Sunnyvale, California-based company revealed its stake in the e-commerce giant, its stock got a 9% jump and continued to rise, currently it’s around $41. The news of the Alibaba’s IPO are already included in the stock prices of both companies leaving the greatest issue for the moment be the date of the deal.

Disclosure: none

 

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...