Gene Munster: Time to Buy Yahoo
Is it time to buy Yahoo stock? The Internet giant landed back in the news Wednesday after private equity firm Silver Lake Partners and a group of investors reportedly offered to buy a minority stake in the Internet company for $16.60 a share.
According to Piper Jaffray's Gene Munster, a future buyout means it's time to buy Yahoo stock.
“We recommend owning it here based on some changes that are ultimately are going to have to happen with a new CEO in the next three to six months,” he told the “Fast Money” team.
Silver Lake is just one of the several private equity firms expected to make a bid for Yahoo . Thomas H. Lee Partners is reportedly interested in buying Yahoo’s U.S. business, breaking away from other bidders that are for now eyeing either a minority stake or teaming up with the Internet giant's partners in Asia.
While Silver Lake Partner's number may be less than what some investors think the Yahoo is worth, Munster believes it is still a good near-term catalyst for the company.
“Anything for Yahoo’s core business is going to be viewed as positive,” Munster said. “Any direction for Yahoo should be positive for shares in the near-term.”
A longer term investment in Yahoo, however, a bit cloudy, he added.
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Trader disclosure: On Nov 30, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Dan Dicker Long IBM, BHI, RIG; Jon Najarian Long: CIGX, CBOE, CME Long Call Spreads: AAPL, AMZN, FCX, MS, BAC, X, NUE, ANR, ACI, MT, NEM, GG, NGD; Steve Cortes Long: Treasuries, Short: EUR, GBP, AUD, MXN, QQQ, DB, XRT, AAPL, Dennis Gartman Long: gold in euro, long canadian dollar in euro terms, long wti crude oil, long australian dollar short: sp 500 index, british pound
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