11 February 2008

Microsoft/Yahoo Merger – Biggest Bang for Both

While looking at the hostile bid from Microsoft, you can’t help but look at the potential upside of the takeover, which is to force Yahoo to look at its strategic direction, and Microsoft’s intent. While it is understood that Yahoo and Microsoft in its current form can’t really compete with Google on the same scale (although they both really want to…), Yahoo is missing the boat on what its strategic goal should be…the better alternative to Google, in all its glory. Now, already having search, ads, and portal content, the one thing that Yahoo needs, is to build credibility in the the world of Web 2.0, by getting companies to buy into it, as a social/corporate/educational landscape, where the Internet becomes an essential tool in the working environment, by utilizing “collaboration” applications, similar to Google Documents & Spreadsheets. By becoming part of Microsoft, these online applications would instantly put the Yahoo faithful to the forefront of Web 2.0, and give Microsoft the added punch needed to shore up its businesses, outside of boxed software. Application-rich content is the direction Yahoo needs to go, and it can only compete if it ties up with Microsoft. No doubt the majority of Yahoo shareholders will see the light, and pony up to Microsoft’s offer. Microsoft could go another $5 per share (offer $36/share) to secure the confidence of senior management, and still come out a winner in the deal.

Microsoft will be better off by upping the ante for Yahoo, and take it under its wing, and give them both a leg up in the battle with Google. A year after this acquisition will probably see Gates take over the top spot as richest in the world.

16 October 2007

Subprime Meltdown Explained

I found a great article over at CNNMoney that gives a good explanation of the subprime collapse. Enjoy the read.

31 August 2007

How to Read a Company Balance Sheet

Informative video here, courtesy of AOL Videos & TheStreet.com.

Update - 1 Jan 09 - fixed broken link

04 August 2007

Top 10 High-Yield Dividend Stocks

A good summary of the top 10 dividend stocks to be holding. Courtesy of TheStreet.com.

13 July 2007

More on the Blackstone IPO Saga...Tax Issue

With the recent news of Blackstone's teflon coating, here is a great summary, courtesy of Bloomberg.com;

Reading Fine Print
Tax experts say the strategy used by Blackstone is commonly employed and is fair because the founders of the firm are effectively being reimbursed for the decline in value of their intangible assets that results from the sale.
The fact that new shareholders are ultimately bearing the burden should have been reflected in Blackstone's initial purchase price, said Victor Fleischer, a University of Illinois law professor who is advising Congress on the tax treatment of hedge funds and buyout firms.
``In a fully efficient market, one would expect Blackstone investors to read the fine print of the prospectus and discount the pricing of the IPO shares and aftermarket shares accordingly,'' Fleischer said. ``Whether that actually happened, of course, is hard to say.''

With the onslaught of IPOs in these kinds of companies coming up (e.g. KKR, etc.), read the fine print, and figure the price you are willing to pay, based on sound financial information. It will save you some headaches when you look at popping with IPOs.