YHOO - Yahoo Inc.

[Stock_Analyzer]

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YHOO: Summary for YAHOO INC - Yahoo! Finance

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[Stock_Analyzer]

Report: Investor to lead fight against Yahoo board
Thursday May 15, 5:28 am ET
By Michael Liedtke, AP Business Writer
Report: Icahn will try to overthrow Yahoo's board, hoping to revive Microsoft takeover bid

SAN FRANCISCO (AP) -- Billionaire investor Carl Icahn reportedly has decided to lead a mutiny against Yahoo Inc.'s board in an attempt to pressure the directors into reviving negotiations to sell Yahoo to Microsoft Corp.

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To turn up the heat on Yahoo's board, Icahn has lined up a slate of 10 directors to nominate as replacements, The Wall Street Journal reported on its Web site Wednesday, citing an unnamed person close to the matter.

Icahn hadn't returned phone messages from The Associated Press as of late Wednesday. His intentions should become clear soon, however, because Yahoo has set a Thursday deadline for submitting candidates to oppose its board at the company's July 3 annual meeting.

A representative of Sunnyvale-based Yahoo declined to comment.

Yahoo's board is on the hot seat for rejecting Microsoft's initial bid of $44.6 billion, or $31 per share, and taking measures that finally drove away the software maker.

Microsoft Chief Executive Steve Ballmer orally offered to raise the offer to $47.5 billion, or $33 per share, earlier this month. He withdrew the bid May 3 after Yahoo CEO Jerry Yang, acting on behalf of the board, held out for $37 per share -- a price that Yahoo's stock hasn't reached in more than two years.

Yahoo shares rose 58 cents to close at $27.14 Wednesday on hopes that Icahn would spearhead a stockholder revolt. They gained another 51 cents in after-hours trading.

The Yahoo board's demands for $37 per share infuriated many of the company's shareholders, who are skeptical about Yang's pledge to dramatically accelerate the Internet icon's revenue growth during the next two years after being stuck in financial funk since 2005.

Hoping to capitalize on the discontent, Icahn reportedly has spent more than $1 billion to acquire about 50 million Yahoo shares -- a stake of about 3.6 percent.

Now Icahn appears ready to spend millions of dollars waging a campaign to oust the Yahoo directors, including Yang, who started the company with David Filo 14 years ago.

The Journal reported Icahn's list of alternate directors includes at least one former CEO, Frank Biondi, who used to run Viacom Inc. Biondi has worked with Icahn in previous battles -- known as proxy contests -- to unseat corporate boards.

It's usually difficult for a dissident shareholder to prevail in proxy contests.

But the odds actually might be stacked against Yahoo's board in this confrontation because there is so much shareholder anger and Icahn has an established track record for effecting change in corporate America, said Espen Eckbo, founding director of the Center for Corporate Governance at Dartmouth College's Tuck School of Business.

The list of troubled companies that Icahn has recently pressured into shake-ups includes Blockbuster Inc., Motorola Inc. and Mylan Laboratories Inc. He also pushed software maker BEA Systems Inc. into agreeing to an $8.5 billion sale to its rival Oracle Corp. this year after Oracle dropped a bid of $6.7 billion.

"I think there is a better than normal change of (Icahn) winning because it's such a clear-cut case of what went wrong here," Eckbo said.

What's not clear is whether Microsoft is even interested in making another bid after spending more than three months chasing Yahoo to no avail.

A Microsoft spokesman declined to comment Wednesday.

Many analysts still believe Microsoft eventually will come back to the negotiating table because a Yahoo takeover represents the software maker's best chance of achieving its goal to challenge Google Inc.'s dominance of the Internet search and advertising market.

But Ballmer and other Microsoft executives have publicly indicated that the company has decided to explore other ways to bolster its unprofitable Internet operations.

If Yang and the rest of the Yahoo board decide to resist Icahn's renewed talks with Microsoft, the company could try to win over shareholders by turning over some of its prime advertising space to Google. That could appease shareholders because Google's technology proved to be far more profitable than Yahoo's ad system in a two-week trial completed last week.

Yahoo's flirtation with Google is one of the main reasons that Microsoft abandoned its bid, according to Ballmer.

But an alliance between Yahoo and Google would face antitrust obstacles because the two companies control more than 80 percent of the U.S. search advertising market.

[Naamplao]

wow...so many views on this stock and no commentary on the share price....well I will offer a view that hopefully be useful for you.

Here is the sharpChart: http://stockcharts.com/h-sc/ui?s=YHO...d=p55086347342

There is a lot to discuss here....some bad...some good and some hopeful

THE BAD

The stock share price is plumbing the lowest levels seen for at least 4 years. The 50dayMA crossed the 200 dayMA negatively back in June and the gap is increasing. The RSI is bottom feeding coming out of the "oversold" levels but has fallen back to the 30-40% qange after a brief spike above 50%.

The TRIX is in a prolonged decline which is now relatively flatlined with little defined direction.

The GOOD

While the share price has dropped the Accum/Dist does not show a selloff to me. Rather there is an accumulation until recently where it has flatlined....but we have not seen an abandonment of the stock.

The RSI is showing some signs in recovery perhaps this is a buying opportunity.

The share price is inching closer to the 20dayMA. This is important since there are signs that the Bollinger Bands are tightening. You cannot see this in this chart unless you select a plot of the BB width. We want to be over the 20dayMA when the BB's start to expand again

The HOPEFUL

We may have seen a bottom here. I say may since it is not certain as a trend. My comments on the BB above is on the hopeful side. The volumes are low...whether this is summer doldrums or the calm before the storm I am not sure.

Here is the P&F chart


As you can see we are at a significant support level at $19.50...if we fall below this level the share price will seek a much lower bottom....this would be a significant event, probably combined with expanding BB's.

Resistance levels are at $24.00 followed by $26.00...but I doubt that we shall reach or test these levels in a hurry.

The 5 day yahoo line chart is as follows:



The chart looks like waves on the ocean...nice peaks and huge troughs. I see no direction here in spite of the recent uptick.

My prediction here is that we will see a lot of sideways motion. We may see some testing of the $19.50 support during this time...keep an eye on the BB's the "action" will occur when they get tight then expand. I think this will occur 10-14 days from now but it could come sooner.

[Naamplao]

Here is the Sharpchart:

http://stockcharts.com/h-sc/ui?s=YHO...d=p97451205411

The share price is looking to challenge the $19.50 support level today....the BB's are tightening fast...we are headed down....the RSI is falling....the Accum/Dist is in a flat "wait & see" mode, which should change soon one way or another. A major price change is near....I would bet down at this point.

[Stock_Analyzer]

Naamplao

I think if we lose 19.20 support then yahoo is in trouble for a short period of time, but if we hold 19.20 then we could see another short term pop to 21$ ranges

[Naamplao]

SA

Tomorrow will tell.

My take is that $19.50 is the support and we stopped just short of that. The Bollinger Bands are tightening like a vise right now. While the indicators are not definitive...there is a declining RSI and the share price is lower than the 20dayMA. This is not usually indicative of a bullish breakout...though it has happened on occasion.

Here is the 5 day Yahoo linechart



If it rises it will probably rise to only $20.50 which seem to offer some resistance and then move sideways.

But if it falls below $19.50 I think this will be a fall that will take some time to recover from. The stock would be plumbing new depths for a bottom. At best there would be severe negative drift at that point. There is nothing in the charts to indicate a rapid rebound if it broke through $19.50 and stayed there.

You may be right...perhaps I am.....the results will be known soon.

[Naamplao]

SA

We have broken my view of the Support level at $19.50 and now we are at your estimation of the support at $19.20. It took a day longer than I expected but we got there.

I redid my Sharpchart to show the Bollinger Band width

http://stockcharts.com/h-sc/ui?s=YHO...d=p34260032476

As you can see this is as tight as it gets in the recent past. We are snuggled against the lower BB with a hint of expanding...headed for 30%RSI

I doubt your support level will hold any better than my estimate. The stock is ready for finding a new bottom.

Of course, when you hit the bottom levels of RSI this becomes a buying signal....but not right now....wait for that bottom to come in my opinion