Nov
19

Yahoo (YHOO) Announces $5 Billion Stock Buyback

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Yahoo (YHOO) Increases Stock Buyback Plan, To Offer $1 billion of Convertible Notes

Yahoo (YHOO) announced today that they would be offering $1 billion of convertible notes due 2018 and are also increasing their buyback plan. YHOO has been aggressive in buying back shares recently, and has only $300 million left on their current plan. Management showed that they clearly feel Yahoo is still undervalued at current levels and would continue buying, announcing a $5 billion repurchase plan today, an amount that would account for nearly 1/7th of their outstanding shares at yesterday’s closing price. Yahoo currently has $3.2 billion in cash on their balance sheet and extremely valuable stakes in Alibaba and Yahoo Japan. They will be required to sell a significant percentage of their Alibaba stake in the event of an Alibaba IPO. Last week I highlighted numerous charts of YHOO, they have been a strong performer as of late and we expect shares to respond favorably to this news. I believe YHOO stock is a buy and will reach $40 within the next couple of months.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Nov
14

How long will Yahoo (YHOO) Shares Keep Running

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Yahoo (YHOO) Could Find Resistance at $40

Yahoo (YHOO) shares have had quite a run as of late, up 10% in their last 5 trading days. After using a short-term chart of YHOO to anticipate their action this week, with shares now at a 7 year high it is necessary to take a look their long-term chart to determine where shares may next run into resistance. Looking at all available price action data available on Yahoo’s stock, we can see that historically shares have been met with a good deal of resistance near $40, only eclipsing that figure for a meaningful amount of time during the internet bubble of 1999. Coincidentally, when analyzing Yahoo’s fundamentals last month, the high-end of our determined fair valuation range for YHOO was $40. From both a technical and fundamental perspective I believe shares will appreciate by another 12% in the short-term barring a major downturn in the US equity markets.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Nov
13

Yahoo (YHOO) Shares Close at New 52 Week High

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Yahoo (YHOO) Stock at 52 Week High, Highest Price Since January 2006

Yahoo (YHOO) is making a lot of people look/ feel pretty smart this week as shares continued their surge today. YHOO opened down this morning but remained in a steady uptrend throughout the day, filling the gap on their chart created by yesterday’s price action and setting a new 52 week high in the process. Not just a 52 week high, today was Yahoo’s highest closing price since January 2006. As mentioned yesterday, there is no overhead resistance on YHOO’s chart now and shares have plenty of room to continue their run. In my analysis of Yahoo last month I suggested they were undervalued and that their fair value was in the range of $38- $40 per share. I will review and update my recommendation of YHOO next week if shares continue to close in on my target price.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Nov
12

Yahoo (YHOO) Stock Continues Strength, Over $34

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Yahoo (YHOO) Shares Remain Strong

In what is seemingly becoming a daily column, we take a look at Yahoo’s (YHOO) price action once again. After breaking out of a wedge pattern yesterday, YHOO stock gapped up once again today taking out the key $34 level as we had expected. Despite a down day for the markets, Yahoo displayed strength all day and remained above $34. I believe this price will now provide support to the downside, and looking at YHOO’s chart now, there is little overhead resistance to be found. This stock is firing on all cylinders at the moment from a technical analysis perspective.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Nov
11

Yahoo (YHOO) Breaks Out, Little Resistance Above $34

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Yahoo (YHOO) Gaps Up, Out of Falling Wedge

Yesterday we highlighted a chart of Yahoo (YHOO), showing a close on Friday just above the falling wedge pattern they have been trading within the past month. I was looking for a confirmation of that break out today and Yahoo followed through, gapping up on the open and finishing the day well above Friday’s close. Looking at the chart now, YHOO faces slight resistance at $34 and has a good deal of upside from a technical perspective once taking out that barrier. Another strong day tomorrow will take shares of YHOO above $34 and on their way to our $38 target price.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

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