Monday, October 27, 2014

Jim Cramer: Yahoo! Shares Going 'Much Higher' Thanks to Alibaba

a NEW YORK (TheStreet) -- Yahoo! aare up Monday thanks to its 16.3% stake in Alibaba , which is also up, saidaTheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, duringaCNBC's "Cramer's Stop Trading" segment. Cramer sees Alibaba, now at $98 a share, easily climbing to $110, and if that happens Yahoo! "will go much higher." Yahoo! shares, at $44.50, are up over 10% for the year to date and 38% for the past 52 weeks. Must Read: Warren Buffett's Top 10 Dividend Stocks The big concern for Yahoo!awill be how it handles its corporate tax situation with that large Alibaba stake, Cramer said. Currently, the pre-tax stake is worth roughly $40 billion.a According to CNBC'saDavid Faber, the stock could have $10 to $12 per share of added value if Yahoo!'s proceeds from the stake are handled in a tax-efficient manner.a Turning to oil prices, Cramer noted Goldman Sachs lowered its 2015 price forecasts for crude on Monday.a Cramerasaid Goldman Sachs called for WTI crude oil prices to run to $150 per barrel last summer. The call, which never came to fruition, essentially marked the top in oil prices.a Now that Goldman Sachs is calling for oil prices to head even lower following a dramatic decline over the past month, the commodity may be relatively close to a bottom, Cramer concluded.a Must Read: Aegerion, Seattle Genetics CEOs Accused in Suit of Cocaine Use -- Written by Bret Kenwella Follow @BretKenwell


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