Purchasing Yahoo!

Posted on September 30, 2005 , filed under Stocks | Print This Post

Today I purchased 500 shares of YHOO, Yahoo! Inc. at 33.97. Yahoo! provides Internet services to users and businesses through the Yahoo! Network; and a range of tools and marketing solutions for businesses in the Unites States and internationally. It offers an array of communications services, including mail, messenger, calendar, chat, greetings, clubs, and photos; and various commerce services, such as shopping, auctions, finance, and travel; as well as content and media programming services in various areas, including sports, music, movies, news, and games through partnerships with various content providers.

It appears to me that Yahoo! is moving away from the role of a content aggregator into the role of a producer. For instance, according to this press release, Yahoo! has decided to revamp its finance page by introducing editorial columns written by some of the nations leading experts. Yahoo must diversify as it takes on heavy competition in the aggregation and advertising space from such giants as Google. Yahoo has also taken other attempts to diversify this year, the company purchased a 40% stake in alibaba.com a fast growing e-commerce start-up based in China. Alibaba.com is one of the few Chinese companies I am enthusiastic about. It has a strong brand name inside and outside of China and most importantly the company is profitable. Yahoo! also handed over promotion of its Yahoo! brand name in China to Alibaba.com. That move alone is one of the smartest decisions I have seen involving an American company dealing with China. Instead of going into China alone, Yahoo! decided to relinquish control of promoting its brand name to an established start-up with local and national governmental ties. For the short term it appears as if traders will embrace the new direction that Yahoo is taking. I read this article that mirrors my sentiments about Yahoo’s current stock price. I’m not so sure how the strategy will pan out in the long term, but in the short-mid term I believe it’s a solid approach.

Symbol: YHOO, Yahoo! Inc.
Intelligent Investor Strength: 7
Chart Strength: 7
Speculation and Greed Strength: 8

RawGreed Strength Rating: 7.5

Target Buy Price: under $34
Target Sell price: $36 within 1-3 months, $38 within 3-6 months.

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3 Comments »

Pingback by RawGreed.com - Stock Updates, RawGreed Awards, Business Gossip » Blog Archive » Selling Yahoo! Inc.

2005-11-02 17:18:03

[…] I wrote this earlier article on purchasing YHOO, Yahoo! Inc. on September 30th, 2005. I purchased 500 shares of YHOO, Yahoo Inc. at $33.97 on September 30th, 2005. I sold 500 shares of YHOO at $38.00 on November 1st, 2005. […]

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Trackback by Miki Ringtones blog

2006-01-05 04:56:49

Happy New Year

Happy New Year !!!

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Pingback by RawGreed.com - Stock Updates, Raw Greed Awards, Business Gossip » Blog Archive » Raw Greed morning report

2006-03-16 09:38:27

[…] I believe Yahoo is an older and more mature company in the search market. I like the company’s conservative approach to using capital and rolling out new services. Yahoo recent scrapped plans to create its own customized content and the company is slowly rolling out its Yahoo Publisher service for advertisers. Yahoo appears to have learned several lessons from the .com crash that collapsed high flying companies that were spending money without realizing any revenue from the services they created. I wrote a previous post about Yahoo and the company is one of my former picks. I originally purchased YHOO at $33.97 and I sold the stock at $38. You can click the predictions link at the top of the page to view my original price targets for the company. I believe negative sentiment may build around Google and YHOO shares will likely drop further as an after effect. I like YHOO at under $28. The stock is currently trading at low $30’s. […]

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