A couple of thoughts on a Friday:
1) Yahoo! Must Merge with Microsoft
A year ago Yahoo! rebuffed Mister Softee’s attempt at a buyout, thinking they could get their share price (then in the high 20’s) above the mid 30’s offer price on their own just by turning around the business. Well, they were wrong. With Yahoo! dipping under $20 after the latest sub-par earnings report, and little in the way of promise that they can monetize the undervalued share price, Microsoft throws investors a $31 per share bid. Yahoo! can’t turn this down. Shareholders will revolt, myself included. Of course, the Feds have to approve the deal along with Yahoo’s board. But what do you think, would combining Yahoo! and MSN accomplish anything in terms of Internet market share?
2) Potential Bargains in the Drug and Bank Areas
I’m a bit behind schedule blogging about these, but hopefully next week I’ll have some thoughts on a couple of large cap laggards; Citigroup and Merck. The goal is to make a compelling long term argument for each, but I’ll let you all be the judge as to how well I can do on that front. Feel free to share your opinions if you have any of those two.
Until then, have a great weekend!
Full Disclosure: Long shares of Yahoo! and Merck at the time of writing, while considering the merits of Microsoft and Citigroup