Cramer: "Yahoo!'s Big Call Buyers Will Whimper"
Enviado: 3/11/2006 15:08"Yahoo!'s Big Call Buyers Will Whimper"
By Jim Cramer
RealMoney.com Columnist
11/3/2006 8:52 AM EST
"Who in heck is buying all of those Yahoo! (YHOO - commentary - Cramer's Take - Rating) November 27.5 calls? That's amazing! Who could be so sure that this stock is going higher like that?
I was watching the call-buying all day Thursday and marveling that people believe something imminent is going to happen here. I'm not saying that something shouldn't happen here. I'm not saying that if I were Comcast (CMCSA - commentary - Cramer's Take - Rating) or AT&T (T - commentary - Cramer's Take - Rating) or Microsoft (MSFT - commentary - Cramer's Take - Rating) I wouldn't consider buying it.
But I know that this stock would be lower without the takeover talk. The decline to $22-$23 came from execution risk. The rally back to $24-$25 came with the notion that Panama, Yahoo!'s new search engine, will ship next quarter. But the run to $26 and change displays belief in an imminent deal, which I simply believe is unlikely. Nothing happens imminently with this management team.
I said that when Yahoo! was at $22, at last a company like a Microsoft with no online strategy at all could pay $32 and get the company. That doesn't work at $26.
But the call buyers didn't seem to care. Sometimes I wonder whether they didn't care because they thought that the Microsoft meeting after the close was about a purchase of Yahoo!, instead of something far more meaningless, a deal with Novell (NOVL - commentary - Cramer's Take - Rating) of all things. (Felt like the 1990s when you heard this, didn't it?)
My prediction: Those Yahoo! calls will go out worthless. "
(in www.realmoney.com)
By Jim Cramer
RealMoney.com Columnist
11/3/2006 8:52 AM EST
"Who in heck is buying all of those Yahoo! (YHOO - commentary - Cramer's Take - Rating) November 27.5 calls? That's amazing! Who could be so sure that this stock is going higher like that?
I was watching the call-buying all day Thursday and marveling that people believe something imminent is going to happen here. I'm not saying that something shouldn't happen here. I'm not saying that if I were Comcast (CMCSA - commentary - Cramer's Take - Rating) or AT&T (T - commentary - Cramer's Take - Rating) or Microsoft (MSFT - commentary - Cramer's Take - Rating) I wouldn't consider buying it.
But I know that this stock would be lower without the takeover talk. The decline to $22-$23 came from execution risk. The rally back to $24-$25 came with the notion that Panama, Yahoo!'s new search engine, will ship next quarter. But the run to $26 and change displays belief in an imminent deal, which I simply believe is unlikely. Nothing happens imminently with this management team.
I said that when Yahoo! was at $22, at last a company like a Microsoft with no online strategy at all could pay $32 and get the company. That doesn't work at $26.
But the call buyers didn't seem to care. Sometimes I wonder whether they didn't care because they thought that the Microsoft meeting after the close was about a purchase of Yahoo!, instead of something far more meaningless, a deal with Novell (NOVL - commentary - Cramer's Take - Rating) of all things. (Felt like the 1990s when you heard this, didn't it?)
My prediction: Those Yahoo! calls will go out worthless. "
(in www.realmoney.com)