This column was originally published on RealMoney on Sept. 22 at 8:51 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
getting too cheap?
The whole (sickening) way down to $31 for Yahoo! while
has climbed to well above $300, I have watched the leveling process at work. They both now sport identical multiples on next year's earnings. Any appreciation from Google beyond here I believe will accrue to Yahoo!'s benefit. And I believe that Yahoo!, which I own for
ActionAlertsPLUS, is getting "too cheap" -- relative term, I know -- to ignore for the growth guys.
I say this because when I read about all of
that the newspapers are having, I keep coming back to the fact that they are being challenged not so much by Google on the ad side -- they are on the content side, because Google is taking mindshare away -- but by Yahoo!.
Look, Yahoo!'s never going to be cheap. It still has a giant market cap of more than $40 billion, but it is now down for the 15% for the year. That seems extreme. It's even down year-over-year.
Yahoo!'s been penalized because it didn't guide up enough when it reported and because many funds sold Yahoo! to buy Google, because at $295 for Google and $34 for Yahoo!, it was a bit of a "no-brainer," as the insiders say.
But not anymore, at least from here.
Yahoo! deserves another look.
People keep emailing me and asking me, "What did you say last night on "Mad Money" about so and so?" People, you can
read a big recap every single night on
for free! It's all there! Or look for the "Jim Cramer's Wrap-up" box on the
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At the time of publication, Cramer was long Yahoo!.
James J. 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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