Monday, September 2, 2013

"Strike a pose! Yahoo's CEO Marissa Mayer is equally as comfortable talking social media collaboration and the cloud as she is doing a fashion spread in Vogue magazine. Now this Yahoo stock is back in style and turning heads!

Dow Jones Industrial Average 14,810.31 (Down) Week ending 08-30-2013

Yahoo! CEO Marissa Mayer
This stock market has come down from Dow 15,800 high level to a 1000 points lower and I am starting to find and buy some good value stocks here, especially in the technology space.  One of those stocks last week was Cree (Symbol CREE, $55.14), but the second and more intriguing one to me is Yahoo! Inc. (Symbol YHOO, current price $27.12).

Yahoo's! CEO and company transforming visionary Marissa Mayer is molding this company to success through buying small bleeding edge social media companies for growth and at the same time collaborating with companies that in the past they treated as competitors such as Yahoo News with Disney and ABC's Good morning America.

(Photo from David Paul Morris - Bloomberg)
Yahoo! Inc.,which on its own, is one of the most recognized franchise names since the beginnings of the Internet, has really never parlayed this franchise value into the price of the stock.  With the exception of revenue growth, the company has some wonderful numbers. Return on Equity 29.44% and a PEG ratio of 1.27.  A Current ratio, (Assets to Liabilities ratio), of 4 to 1 and very little long term debt 1% (9 Mil.). EPS quarterly YOY growth of 70.44%

This Sunnyvale , Ca. company, YHOO gets most of their revenue from search and display advertising. They rocked Google's world this month when they showed up in the number one spot in unique user traffic veiws. Their website displays in 25 different languages.


Marissa in Vogue magazine interview.
Earnings per share for 2013 are projecting at $1.47 per share and for 2014 looking like $1.70 per share. The Investor's Business Daily IDB rating for earnings is 93. Forward PE of 17.7.

Here is Marissa's article in Vogue: Vogue magazine hail-to-the-chief yahoos-marissa-mayer/#1 

The 1 year TTM (Trailing Twelve Month) gain in the stock has been 84.87%. Annual free cash flow of 247.83 Million dollars.

Now back to that Revenue Growth: Revenues for 2012 were 4.83 Billion dollars. Investments in  Alibaba Group and the acquisition of Tumblr and other investments in growth should bring revenues along in my opinion. Here are some excerpts from a USA today article by Scott Martin on July 16th this year about Yahoo revenue:

"Yahoo is showing some signs of reversing course. Mayer has focused on revamping services, giving makeovers to the likes of Yahoo's Mail, News, Weather, Sports and Flickr photo-sharing, among others, in recent months."

Mayer touted the early signs of turnaround for interest in some of Yahoo's services on a conference call Tuesday with analysts, investors and members of the media.

"Renewed traffic growth in the face of multiple years of decline is, to my knowledge, unprecedented among industry players that operate with billions of page views," she said.

Yahoo has also gobbled up 17 companies in the past year in a bid to add popular services such as photo-blogging site Tumblr, which it acquired in a $1.1 billion deal in May. The move has given Yahoo, on a binge for talent, access to highly sought software engineers and designers to add to its ranks."

So I guess the only way to end this article is with the material girl herself, Madonna, and a Vogue - Strike a Pose image,  which idea is wholly owned hers, in concept and in spirit.



Wish me luck at the Fantasy football draft.  Hopefully, I can pick running backs as well as I can pick out stocks!

Freewilly

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