Yahoo! (YHOO) will bounce

Yahoo! Inc. (NASDAQ:YHOO) had a 8.50 million share Short decrease in the last month, could it be the stock has finally hit bottom? With a Short float of just 5.9% and the YHOO shares less than 50 cents away from its prior 52-week low, it's the perfect time for a run.

We've all seen it before, Yahoo gets to the low $20's and before you know it the share price is back at $30. Then they manage to blow it again due to Google or some CEO issue and right back down it goes. However with this week's love affair with Tech stocks, perhaps "Yahoo" can get back to "Yahoo!"

Jackson Securities just upgraded YHOO: Analyst Brian Bolan said, "Following speculation of a buyout from Microsoft, we lowered our rating to Sell from hold. Within weeks, Yahoo! CEO Terry Semel announced his resignation and the appointment of Co-founder Jerry Yang as CEO. While we are still waiting to see what Yang has in store for Yahoo, we note that the valuation has become more reasonable and our SELL rating is no longer warranted. We also note that a management transition and an innovation in the email platform have buoyed our expectations for the coming turn around announcement."

Ah yes, Yahoo's new email with its built-in instant-messaging module that doesn't require you running IM software. It also allows users to exchange text messages with people on cell phones, although the message exchange must be initiated from Yahoo Mail. The Wall Street Journal just gave the new email system a thumbs up and you can watch their video review as well.

The new email is great, now if their management team can get it together, we may have a stock worth buying. President Susan Decker told employees in a memo Wednesday that the company's global sales chief is leaving, the second major marketing executive change at the company this summer. Come on Yahoo! get it together so we can all benefit from your stock! Still, to throw Yahoo to the dogs is not valid, how many times have you read that Microsoft (MSFT) should swoop in and buy them? Even if nobody buys them, the company is 'buyable' from an acquisition point, and that makes the stock more attractive. A bounce is coming in Yahoo! shares, you can feel it, I can hear that lame Yahoo Ad jingle in my head, "Yaahoooooo" - the stock is ready, but is Wall Street?

Yahoo holds the No. 1 spot on Alexa's ranking, followed by msn.com and 3rd place is currently Google.com. It's one of the most valuable landmarks on the internet and its shares are trading near a low. How could you not buy it? You know hedge funds (if they have any money in another month) and big investors are going to load up soon, it's just a matter of time. Yahoo founder Jerry Yang, who took the chief executive role in June, pledged to map a new strategy in the 100 days from July 18th. So, if some news comes out that is in Yahoo's favor, we will all watch shares bounce regardless of Wall Street analyst upgrades/downgrades.

Come Yahoo, put the exclamation point back in your company name. Best wishes Terry Semel.

Article written by: Ted Gottsegen
Article posted on: August 30th, 2007

Disclaimer: The Author does not have any positions in YHOO.