I established a new, full portfolio position in Yahoo (YHOO) on Tuesday, 2/21, at $14.93.
The YHOO story is out there, and I like it, but didn't want it until it broke down under $15. The Asian assets, the $2 a share in cash, and the content led by finance and sports are the major chunks of value in the company. Some folks I admire peg the value in the low to mid $20s. But if a value of $20 can be realized, that's a significant gain from the current price.
My contrarian bent likes that the company is unloved, to say the least.
I like YHOO appointing a new CEO and shaking up their board. But I like even more Dan Loeb owning a bunch of stock and taking an active role -- nominating his own slate of directors for the board.
In short, I think YHOO should be broken up. We'll just have to see what happens.
I don't see much downside from here, barring a market-wide 2008-style panic. The risk is time-risk -- the stock being dead money.