Comments on: Revisiting the Google/Yahoo Paired Trade

By: Jay Walker

Jay Walker — Fri, 21 Jul 2006 17:00:00 +0000

You must be a happy man, Chad. Good call.

JW
The Confused Capitalist

By: Chad Brand

Chad Brand — Thu, 20 Jul 2006 14:04:00 +0000

Tempted? Of course, but I’m going to stick with it. I still see Yahoo! becoming less and less dominant on the web, and since the valuation gap seems irrational to me, closing out the trade after 24 hours might be leaving a decent amount of money on the table.

Google’s report this afternoon will be interesting. If the stock rallies strongly tomorrow I’ll be thrilled, but a disappointment and much of the trade’s gain might evaporate.

By: Andy Kern

Andy Kern — Thu, 20 Jul 2006 13:42:00 +0000

Good call, Chad. Are you tempted to cover after a quick 20% one-day gain?

By: Chad Brand

Chad Brand — Wed, 19 Jul 2006 20:44:00 +0000

I suggest you reread the post you just commented on. As you will see, long GOOG and short YHOO was exactly the trade that was written about.

By: IM

IM — Wed, 19 Jul 2006 20:35:00 +0000

That didn’t work out too well did it ? Maybe Long GOOG and short YHOO might have looked better in retrospect. Well atleast it looks like YHOO at current prices, may be a very good buy with a one year holding period in mind.