YAHOO – more trouble ahead – market update

Yahoo will have to drop substantially below 10 going forward. From a pure pattern perspective, the target might even be $4/5. Earnings do give a similar target, as for no growth stocks 10 times earnings is the limit in hard times. The only hope Yahoo stockholders have is that at some point MSFT may step in. But time is working for them and Yang made the biggest mistake not hitting the bid of MSFT a few months back. The chart of Yahoo without a takeover offer is clearly pointing to single digit prices. As Fuld from LEH, there are times where bargaining is no option.

The NDX clearly set a signal with closing below yesterday’s low but on even lower volume. Even the strong financials closed lower on average and we should see follow through selling soon in the next days as the earnings picture gets more substance.

Earnings came in 1 cent better?? and they want to fire at least 10% of workforce that makes the stock trade up after hours but nothing changes at the picture – the stock will have to go down.

Advertisements

~ by behindthematrix on October 21, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: