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Kaminsky's Call: Yahoo's $3 Billion Buyback More Smoke and Mirrors

Is Carol Bartz the world's most desperate woman?

Yahoo
CNBC.com
Yahoo

Yahoo! and its CEO (that would be Bartz) went for the jugular last night, and announced a $3 billion buyback.

While the move could lend short-term support to the stock, companies that initiate buybacks at 52-week lows usually have as much success as the Greeks do in the Winter Olympics.

Today’s "Call-to-Action" is simple: Don't be fooled by Yahoo's attempts to prop up its stock. Just because it's at a one-year low doesn't mean it can't go lower.

Yesterday, I searched the NYSE’s 52-week low list and found a long-term name with promise in Exxon Mobil . It was a casualty of quarter-end selling. Yahoo is not.

When Bartz was hired in January 2009, there was fanfare and promise that she would march the company back to the promised land. Instead, the stock has severely lagged the broader tech index. Microsoft's overture and subsequent rejection remains a searing memory for shareholders.

To think that the pre-split all-time high was $500.13 is just mind-boggling.

The most attention Ms. Bartz has been able to garner for her company is when she uses profanity in public forums, an event that is viewed by millions, ironically enough, on Google's YouTube.

Management can use all the smoke and mirrors it wants. The fact remains that Yahoo's stock price is just a temporary stop to some lower destination.

I shudder at the thought of what desperate move could be next.

Related News:

"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.

Correction: The headline of this post has been corrected. The post originally said that Yahoo's buyback was $3 million. The actual buyback was $3 billion.

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Gary Kaminsky does not hold any equity positions.

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