by Sam Collins | October 17, 2013 1:24 am
Yahoo (YHOO) — This company is one of the worlds largest providers of content and services. I recommended in my Top Stocks to Buy for May under $24 with a six-month target of $30, mentioning that its investment in Asian companies could add to future earnings.
On July 18, at close to $30, I suggested that traders who bought the stock at $24 consider taking profits, but that investors should continue to hold. The stock fell to under $28, but then rallied to a new high at $35.
I again recommended traders sell on Sept. 25, and I advised long-term investors to take defensive measures like selling options.
On Wednesday, YHOO fell on high volume on a strong day for the market, which is a poor technical event. Analysts look for earnings per share of $1.47 this year and $1.67 in 2014. At 22.5 times this year’s earnings and 19.8 times next year’s earnings, the current price is rich.
I’m adjusting my buy under price to $30, where it is a worthwhile long-term investment. Traders should sell current positions at $33.50 or above.
Source URL: http://investorplace.com/2013/10/trade-day-yahoo-yhoo/
Short URL: http://invstplc.com/1fs9YBx
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.