Yesterday, Microsoft cut off talks with Yahoo and stomped away. Yahoo shares dropped 16% that morning.
I figured, this must be a good deal. Afterall, Microsoft is the company that, in their arrogance, balked at paying $1 billion for Google some years ago.
So I figure.... If Microsoft wants to pay something like $36B, then surefly, Yahoo must be worth much more. I dug deep into my pockets and bought 400 shares of Yahoo Inc. (YHOO).
Its not the first time I've owned Yahoo. Many years ago at a cost adjusted $8 per share, I bought them and held on to more than $300 per share. But the reality hit, and the stock plummeted to around $20 a share, and I sold. Although according to the IRS I made money and owed capital gains taxes, in my heart I felt that actually lost tens of thousands of dolalrs.
So this is the second time around for me and my new girlfriend Yahoo! But it wasn't just because Microsoft refused to take her to the prom just because she refused to put out.
I find that I'm spending more and more time on Yahoo. I love Yahoo Finance. I love their political buzz. The search is iffy but still not bad. They actually have "columnists" that I read. I also like the local news section for aggregating news from local sources.
Yahoo has come along way. Its profitable. Its clearly undervalued if Microsoft wants it. I'm glad to own Yahoo. They have a lot strong assets to build on.
Yahoo honey, I'm with ya till death do we part. I may not be as rich as Steve Ballmer, but I'm a helluva lot better looking.