Icahn's a Pro, Yang's an Amateur

Yahoo! (YHOO - commentary - Cramer's Take), be prepared to get pantsed. Carl Icahn has spent much of his life working just on the kind of situations that CEO Jerry Yang just engineered -- a situation where entrenched management doesn't own a lot of stock but doesn't want to lose its job and is willing to screw all of the other shareholders.

I have believed from the beginning that Yahoo! did not deal in good faith with Steve Ballmer of Microsoft (MSFT - commentary - Cramer's Take). I believe that every time Ballmer tried to reach a deal, Yang went higher. He wasn't a seller because he believed he owned the company.

Now Icahn has put together a slate that I think can be a winner. I think he knows that you can buy the stock at $23-$25 and flip it to Microsoft after the election.

I think he is right. And I think he will have the support of a lot of shareholders, new and old alike, who feel like they've got a great opportunity or they have been wronged. I imagine that Capital World, which just disclosed a big holding, isn't a Yang supporter. The day this deal broke down, the stock should have broken to $22. It didn't, I believe, because Icahn saw this kind of hubris and wanted to get to work. I predicted it immediately on "Squawk Box" and on video because Icahn lives for these situations.

Icahn's a pro, Yang's an amateur. Any weakness down to $25-$26 and this is a buy. Why not here? Time value of money -- this is going to take some time, and if the deal ultimately gets done at $33-$34, you are going to have a long time waiting, and the spread needs to be bigger.

Random musings: The tech trade is so NOT supposed to be happening right now. I have to tell you the action is so bullish that it takes your breath away. I have owned this EMC (EMC - commentary - Cramer's Take) forever, and it has been such a stinker. Suddenly it is the cat's meow! Go figure.

At the time of publication, Cramer was long EMC.

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