Friday, November 20th, 2009

Yahoo (NASDAQ:YHOO) is Getting its Act Together

Feb 23rd, 2009 | By Charles Delvalle | Category: Chart of the Day

My favorite CEO to hate was the ex-CEO of Yahoo (NASDAQ: YHOO), Jerry Yang.

Jerry Yang After Saying "No" to Microsoft's Offer

Jerry Yang After Saying "No" to Microsoft's Offer

This is a guy who sucked so many eggs, that he decided to say “no” to Microsoft’s buyout offer, even though they were offering a MASSIVE premium to Yahoo’s stock price.

Just so you know, that offer was to buy Yahoo for over $40 a share. At the time of the offer, it was trading under $30 a share. Today, Yahoo trades at $12.

It’s not that shocking that Jerry Yang was compelled to give up his position at Yahoo. After all, he lost shareholders one of the most lucrative paydays ever (right as the economy was plummeting).

But believe me when I say that Jerry Yang leaving is good news. Just take a look at the chart below to see why I think that…

022309_cod
What’s interesting about this chart is that Yahoo prices bottomed right as Jerry Yang was leaving Yahoo (he resigned on November 18th).

After that announcement, shareholders took Yahoo stock up over 40%. And since then, Yahoo has continued to make higher lows in an attempt to rally past $14 a share.

Adding strength is the fact that the Slow Stochastic (at the bottom of the chart) is oversold right now.
Oversold means just what you think it does – something has been sold too much. And if something has been sold too much, then eventually buyers will swoop in and snatch up shares at the more attractive, lower prices.

If you notice, the previous two times Yahoo was oversold, it went on to rally at least 15%.

While it is oversold, we also see Yahoo hitting the bottom of its newly formed support channel. And lastly, we see Yahoo starting to use its 50-day moving average as a support, not resistance.

This means Yahoo shares are primed for a climb over the next two weeks. Buying shares is a great move, but buying call options is a better one.


AdvertisementEffectively gain 12 times your money the second you buy this stock

And likely as much as 190 times your money over the next few years. Don't scoff — it has happened before under almost the exact same circumstances that one small petroleum company is now in prime position to cash in on. But you'll have to move fast to ride along for 190-fold gains (or more). Download your copy of this Special Report with all the details...



More on this topic (What's this?)
Yahoo Are You Kidding Me
New Yahoo Finance Iphone App Launches, Yes!
Top 10 Yahoo Searches For 2008, The Economy
Read more on Yahoo! at Wikinvest
Tags: , , , , , , , ,

By Charles Delvalle

Related Articles



About the Author

Charles DelvalleCharles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options. Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".

See All Posts by This Author



Abundance is your guide to surviving and prospering in the coming 21st century depression. Learn the secrets of wealth protection and "emergency investing" from fiancial crisis guru James Dale Davidson.

See All Posts from This Publication

Leave Comment