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What’s up with the buzz over Yahoo? |
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I have to say I’m a bit puzzled by the bullish case suddenly being made for Yahoo’s shares in some quarters.
Of the ten reasons given by this analyst for the company being undervalued as a turnaround case, the only one that seems at all compelling is that it’s trading at a low multiple of EBITDA. But as one commentator to the above post puts it, Yahoo’s EBITDA may be overstated because of the way analysts value its unconsolidated assets.
And the new management team’s laser-like focus on cost will get the company only so far. Margin expansion doesn’t mean all that much if revenues aren’t growing.
As for a deal with Microsoft, why now? Is Bing just a stalking horse? In fact, this analyst thinks the case for such a deal has dimmed rather than improved. And if the issue remains price, what makes analysts think the board of directors cares any more about shareholders now than they did when Steve Ballmer originally came calling?
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