Investing Feeds

Yahoo stock has always looked unimpressive to me. Hence the reason I never got around to buying. I’ve been watching the stock for a couple of years waiting for a sign that Yahoo has potential to head in the direction of Google but I never became convinced that I should go ahead and make an investment. Not saying I made a good or bad decision because I’m no expert on the subject, but recent reports hint at big problems for Yahoo.

As John John Letzing writes for IMG Direct:

When Florida-based shareholder Eric Jackson mounted a campaign last year to spur management changes at Yahoo Inc., he says it was done with the aim of helping the company thrive as an independent entity. These days, however, Jackson isn’t sure that’s possible anymore - and he’s not alone.

Jackson, who plans to soon launch a small activist hedge fund called Ironfire Capital, said he has no intention of investing any of the fund in Yahoo (YHOO), even after its stock dropped to a four-year low on Wednesday. “You don’t want to be catching a falling knife, and Yahoo’s been falling for some time,” Jackson said.

“The company hasn’t shown it can make tough decisions,” Jackson said. If the current state of affairs continues, he said, “I think the best option for shareholders will be a buyout.”

Letzing reports that Yahoo shares were down more than 8% to $19.02 by Wednesday afternoon, and the stock has fallen more than 40% in the past three months.

Wouldn’t be interesting if Yahoo gets acquired by Google?