Yahoo Inc (YHOO): A bearish view


Yahoo (YHOO) has been trading in a very tight range since its gap up in October last year.

Since that gap up, it has been trading between a low of $15.50 and a high $17.78

The high took place at a time when the S&P 500 was at its peak this year as well.

We can see from the chart that it has drop back below the kumo; a bearish sign.

At this moment, Yahoo (YHOO) is trading below the kumo with a possible resistance from the kumo at $16.60

I will be looking for an entry to short YHOO. A break below $15.50 will give me a target of $14.60 and ultimately, $13.00

Yahoo has been cost cutting for quite a fairly long time. Developers were laid off and a fair amount of work outsource.

As a technological company, what is Yahoo’s strength? And if it is positioning itself as a content company, it will be going against the likes of AOL.

What plus point will want see moving forward? And do shareholders believe that Carol Bartz can re-invent this company?

My personal opinion is NO.

I believe the strategy forward for Yahoo is pretty much focused on getting their balance sheet clean up and looks attractive. After which, they will be acquired and that translate to an exit strategy for the senior management.

What do you think?


Yahoo advertise on Times of India

From TechCrunch:

India’s largest English-language newspaper, the Times of India, has an interesting print edition front page today – a huge yellow advertisement for Yahoo’s It’s You campaign first announced last month. You can view the print version here.

The newspaper’s circulation as of 2008 was 3.14 million, making it the largest selling English-language daily newspaper (here’s the whole list). Yahoo already has a large presence in India, reaching 26 million of the 35 million online Indians (according to Comscore, August 2009).

What does the ad mean? Who cares. It’s big and yellow. Yahoo has said it hopes to follow up on the ads by personalizing the Yahoo experience for each user.

Publishing Tech

Yahoo! Inc. (YHOO) : Bullish Cross With Breakthrough above the Ichimoku’s kumo

Yahoo has a gap up on Sept 10 and since then it has exhibited bullish signals

  • Tenkan sen has cut Kijun sen
  • Price has rise sharply and has pierce through the kumo resistance on the Daily Chart

At this moment, it is challenging its previous high back in July at around $17.59 . Incindently, this is also the last support level when the financial crisis took a dive.

2009Sep-Yahoo! Inc-800x600

On the Weekly Chart, we can see that Yahoo is inside the kumo; a trendless state.

2009Sep-Yahoo! Inc-800x600_Weekly

With the last quarter of 2009 coming up, lots of retailers and brand names will have to start allocating their marketing budget for the final burst. Yahoo has a good relationship with various ads agency and I think we will see some action on this front.

Update: Additional Notes
Over the next 2-3 years, I doubt there will a lot of interesting development for Yahoo, unless they start selling assets.

The only forward looking piece that I am looking at is their partnership with Samsung on the HDTV front. (and we do not know what kind of timeframe is needed to make this a success)

Here’s my thoughts on ads revenue:
– major bulk of ads revenue is still derived from brand names
– TV revenue still accounts for major bulk of marketing allocation compared to online ads

Given the above, it is safe to assume that Yahoo wants to continue building their ‘inventory’ of ads spaces.

Tie up with Samsung is a move to capture the revenue on the TV side