Yahoo!: Don't Jump the Ship
This column was originally published on RealMoney on June 19 at 9:19 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
As usual, people don't understand why Yahoo! (YHOO) should trade up, given how "bad" it is. That's a pile of nonsense.
Yahoo! was bad because of now former CEO Terry Semel and his team. Anyone who doesn't know this has never been on the Web, never been involved in business with the Web and doesn't understand the dynamism of the situation.
I don't know if founder Jerry Yang's the right guy. I do know that Semel was the wrong guy. He was disengaged and nobody liked to work there. Keep in mind, this is a Web company, and the amazing thing about a Web company is that most people actually want to work at them because they are exciting and inventive and employees can really make a difference.I know the current perception of me is that I am some TV guru with a column on the Web, but not that long ago I was more well-known as an inventor in the media, and I have to tell you, I have seen Yahoo! fade from being the greatest company on earth to a company that seems like one of these failed states. It is not too late. Yahoo! can be a great company again. It still has the eyeballs and the elegance. It still is needed. It still can be re-energized, and I am genuinely excited about it not as a takeover target but as a company that can turn the earnings corner. Of course, there are no guarantees. Bad management could lead to worse management. But I am not planning to sell it out of my Action Alerts PLUS portfolio anymore. My plan had been to unload it into the rumors of change on Thursday when I was no longer restricted from trading it. Now my charitable trust owns a company that traded at these prices under terrible leadership; why sell it now, with the possibility that it's a call on great leadership?
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV