Two stocks, Yahoo! Inc.(NASDAQ:YHOO) and Jack in the Box Inc. (NASDAQ:JACK), were among top picks to play the year end rally. They were picked by Steve Grasso and Guy Adami respectively on the ‘Fast Money’ segment of CNBC.
“If it [Yahoo! Inc.(NASDAQ:YHOO)] stays above $50, that is a trampoline. This thing could go mid 50s to high 50s, maybe even 60 bucks, ” said Grasso.
Yahoo has been in the news lately for a wide variety of reasons, ranging from issues relating to its major stake in the Chinese e-commerce mogul, Alibaba, to tax issues surrounding that stake. Lately, however, a possible tax efficiency mechanism has trumped the other issues. That is because it has a hefty amount of $15 billion attached to it.
It s believed that Yahoo! Inc.(NASDAQ:YHOO) can possibly avoid this bill by using a Reverse Morris Trust, through which the company will essentially spinoff its stake in Alibaba and Yahoo Japan. Moreover a possible merger is also on the cards which could also work well for the tax efficiency line, that the management is pondering upon.
While Yahoo! Inc.(NASDAQ:YHOO) has been having a hard time getting a reasonable valuation for its core operations, Jack in the Box Inc. (NASDAQ:JACK), the restaurant company doesn’t seem to be suffering from that problem at all.
The company will be releasing its Earnings Report for the fourth quarter today and the stock has had a pretty good start at the opening bell today. It is currently up 6.5% and is trading at around $76. Jack in the Box Inc. (NASDAQ:JACK) could prove to add just the right amount of growth in your portfolio as we head to the Christmas season.
“You cannot poke any holes in this, the only argument that you can make at this point is valuation, which has been the argument for the last $20. I still think it goes higher from here […],” said Adami.
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