Topic: How To Invest

Pat: I’d be very interested in your opinion on Yahoo! Thank you.

Article Excerpt

Yahoo, $17.69, symbol YHOO on Nasdaq (Shares outstanding: 1.2 billion; Market cap: $21.2 billion; www.yahoo.com), is one of the Internet’s most popular destinations for content, search and navigational services. Yahoo’s sites also have a range of other features, including shopping, auctions and email. Yahoo has concluded its search for a new chief executive officer. That has pushed up its share price. The company has appointed Marissa Mayer as president and CEO. Mayer joined Google in 1999 and helped develop many of that company’s most popular services. Before she left, she was a vice-president at Google. Yahoo continues to face intense competition from Google and Facebook. As well, like those companies, it must adapt as more users use mobile devices to access the Internet. The company has a strong balance sheet, with $8.4 billion in cash. It also has profitable operations in Asia, including 20% of Chinese search company Alibaba Group and 35% of Yahoo Japan. Yahoo trades at 19.2 times this year’s forecast earnings of…