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February 21, 2008

Gambling on Yahoo (yhoo) and Microsoft (msft)

2-21-08:  For the more risky investors, smart money is betting the Yahoo and Microsoft deal will eventually come to an agreement. For now it’s a game of patience. Due to the lack of concrete development or news, shares of Yahoo have slowly been slipping as investors are beginning to question if the deal will consummate. We believed the current stale mate is an excellent opportunity for those that missed the boat.

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February 19, 2008

Hewlett-Packard (HPQ): Another great quarter

2-19-08: Hewlett Packard (HPQ) is on a roll.  Despite the recent gloom and doom attitude towards the tech sector, HP reported another great quarter driven by strong PC sales.  According to the company’s earning report, revenue is up 13% and net profit is up a whopping 38%.  For a company this size to report these numbers is nothing short of impressive. It appears management is executing well on their strategies. Currently trading in the mid $40 per share, we believed HPQ is still a good value.

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February 08, 2008

Yahoo! ..Thanks for the memories

2-8-08:  As a Yahoo! user ourselves, the thought of Microsoft buying the company is unsettling. If the deal goes through, shareholders will make a little money, but the Internet as we know it will forever change. The fat cats will walk away with a huge pay day. Wall St. analysts will get their bonuses and capitalism will reign. The executives, the bankers and lawyers will be smiling all the way to the bank. Unfortunately, there is always a loser in situations like this; the biggest loser will be the employees. Nobody seems to care about the thousands of employees that will be fire. In fact, when the layoff happens, Wall Street will probably bid up the stock. Capitalism is sometime harsh and unfair. Best of luck to those Yahoos that will walk into the office one day and be told that’s their last day.

February 04, 2008

Microsoft hostile bid for Yahoo!

  2-4-08: The Microsoft (MSFT) and Yahoo (YHOO) potential merger is intriguing.  The hostile bid by MSFT for $31 per share of YHOO represents 62% premium over last Thursday’s closing price.  The deal is valued near $45 Billion.  This move by MSFT is hardly a surprise given there have been rumors of such a deal for over two years. After YHOO reported its disappointing 4th quarter results last Tuesday, Wall St. punished the stock, driving it below $20 per share (its lowest point in 4 years). All the while, MSFT was contemplating its next move.

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