As I have mentioned before, YHOO will split and ideally is 4/1.
However, I don't think it'll not take such action until quarter
report around mid of January, but may be announced prior to the
end of the year depending on the overall market. If the market
is strong as anticipated by analysts to reach 9500 in DJIA, then
YHOO by that time would reach around $240 and naturally it's time
for them to pre-announce split after earning reports. After
split, it won't impact PE ratio, but will reduce earning per
share, hence the action will be executed after earning reports.
I believe YHOO will exceed street's expectation this quarter due
to Christmas season and its new products. Its revenue will
significantly increase along with its net. My estimate on
revenue in the current quarter is around $70-75m with about $25-
30m net incomes. Its net profit margin hence will be near 36%,
sequentially increasing from previous 53.6m revenue, 16.7m net
with 32% net profit margin. Well, it's still number one in the
internet industry with significant profit margin, which will
continue driving the stock higher. Its revenue will increase
60% in the next fiscal year from street's estimate, that will
reach 100m revenue in the next quarter or two. If YHOO could
remain its profit margin, it'll be one of the highest among the
high tech industry.
Well, I still believe the overall market will go higher with
DJIA around 9500 by year end and YHOO will reach $240-$250, but
it could tank if the overall trend reverses.
Phil |
