This column was originally published on RealMoney on April 20 at 9:41 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
Reluctantly, with full recognition of their own incompetence, it is time to buy
again -- if only for a trade back to $30.
Hear me out on this.
First, there are two people at the company who are
incompetent bozos: Jerry Yang and David Filo. These are the founders. I believe they must have a degree of pride.
I know that they have been told that the problems at the company were related to a couple of underlings who were messing up. They were all fired. It turns out that the problems had little to do with these underlings at all. The problems were in the stars: Terry Semel and Susan Decker.
Yang and Filo can fire them and see the stock back up at $30, when it can be sold.
Second, the aggressive, emotional selling of this week is simply too panicky. The stock doesn't belong at $32. It also doesn't belong at $27, given the potential,
-wise, to ever get it right and the scarcity of Net properties.
Finally, while the company is very expensive, once again the expectations have been washed out of the stock, just as when it was at $23.
Worth it to start buying this hated monster on the "three ways to win" theory.
At the time of publication, Cramer was long Yahoo!.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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