When a company's about to pump up the volume, Jim Cramer finds it hard to keep quiet. And he thinks the future should be loud and proud for Yahoo!
By all accounts, Yahoo! has suffered from years of mismanagement, whether it was Jerry Yang’s decision to pass on the Microsoft offer or Scott Thompson’s fudged resume, Yahoo! just couldn’t get out of its own way.
“That’s why the stock had been flat-lining for the last three years, just stuck trading around the same $15 to $16 range where it still is right now,” Cramer explained.
But Cramer thinks the fortunes of Yahoo and its shareholders may be about to change.
“Over the past two years, Yahoo went through 4 CEOs. And without consistent leadership at the top, there’s just no way a company can execute a turnaround strategy, or any strategy for that matter.,” Cramer said.
But now Yahoo! has Marissa Mayer in the corner office and Cramer thinks she’s the right woman for the job. He also likes the company’s choice of CFO.
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“It made me very happy last week when Yahoo announced that they’re hiring Ken Goldman from Fortinent as the company’s new Chief Financial Officer effective October 22nd. Goldman helped restructure Siebel, the software company that eventually sold itself to Oracle. That’s the kind of CFO Yahoo needs, and the fact that Mayer picked him makes me think she’s going in the right direction.”
Cramer said he thinks now that the company has the ‘right’ leadership, all the other catalysts that should have otherwise been driving the stock will do their work.
Goldman Sachs appears to feel the same.
Recently the firm released research detailing what the company should be worth via a sum of the parts analysts. Following are the 3 biggest pieces of the pie:
- 20% of Alibaba: Goldman values Yahoo’s remaining Alibaba position—the preferred shares and the common stock—at $5.8 billion or $4.93 a share.