May 5th, 2008 by tommy

If I were still a share holder of YHOO, I would be royally irked. Remember a couple months back when this mismanaged company dropped to $18.00 a share?  Well, somehow, they are too stubborn, proud, or delusional to accept an 80% premium.  Yahoo claimed that the $33 / share offer ‘undervalued the company’.  Is this to say then, that the collective intelligence of the market, which had recently priced Yahoo at $18.00 a share, was off by more than 80%?  Yahoo: if you don’t want to do the deal with the devil, we understand.  But don’t insult our intelligence, and really in the end, your own, by coming up with that statement as your reasoning.

This is one quote I am going to tuck away.  I’m pretty sure this will eventually go down as one of those legendary quotes of stupidity.  Rivaling the likes of Bill Gate’s infamous, “64K ought to be enough for anybody,” statement.

Guess what folks- what’s going to keep YHOO shares from dropping back down to $18.00, or even lower?  Speculation that Google will buy them?  I am willing to put my money on that never coming to fruition. As the market comes to recognize this over time, it could be expected that YHOO stock will slowly dwindle back down to it’s $18.00 a share price level.  Steve Ballmer will do well to circle the waters for a while and let this happen.  And then… anybody for a hostile takeover at a significant discount from the  $33 a share last offered. YHOO better clear out some room at their board table soon…