Yahoo! Inc. (NASDAQ:YHOO)’s keeping the countdown till tomorrow. In fact, many others are following through with this, diligent investors are performing a general clearing in their portfolios piling liquidity and preparing for what seems to be a historical event. The Street with the help of Alan Knuckman, Chief Options Strategist at Barchart.com, brought some insides regarding the subject matter.
Yahoo! Inc. (NASDAQ:YHOO)’s currently walking on thin ice and the company might face a clod splash after the deal has gone through. On the course of the day its price fell, then bounced back up staying close to $42. However, it gets complicated when trying to predict Yahoo! Inc. (NASDAQ:YHOO)’s future as there’s basically little value attached to it.
“There’s a lot of moving pieces, we’re trying to figure this all out, but I do like the way that the market reacted after the sell-off and it’s bounced back and it looks like we’re going to try and make some new highs here in the NASDAQ very soon,” said Alan Knuckman.
Alibaba Group Holding Ltd (NYSE:BABA) is Yahoo! Inc. (NASDAQ:YHOO)’s last hope and it seems to be diligently doing its job, unlike the tech company. There are also predictions that tomorrow’s trade will not have unexpected turnarounds, especially there’s little risk for the price plummeting like in previous occasions.
“I don’t think it’s going to have the downturn, the post IPO [Initial Public Offering] downturn disappointment like you saw in Facebook and in Twitter, and Yahoo is a way to play it, but I think Yahoo’s already had a pretty significant move in anticipation of that,” added Mr. Knuckman.
The question as to what Yahoo! Inc. (NASDAQ:YHOO) is going to do with the 50% of its earnings on the 140 million shares, which might boost its balance sheet some $3 billion net of taxes, almost doubling its current cash flow of $4.3 billion. Rumors point to the search and mobile market, which have a potential of double-digit percent growth. However, they made a nice increase on a small value, which unfortunately has little chance of saving them.
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