You mentioned you are long MSFT. Would you share your thesis here? Are you long for the Entertainment division (Xbox 360 & games)? What are the catalysts you are looking for here?
My belief is that the YHOO deal will dominate the trading in this stock for a while. Standard merger procedures are to long the target and short the buyer. Of course, Karen Finerman suggested a Texas hedge (buy both the acquirer and the target). She also has taken a position because she believes MSFT now qualifies as a value stock at these levels.
The value is compelling, but I don't see any kind of short-term upside catalyst. The mood on the Street right now is bullish on basic materials and bearish on tech. I would think there are better places to put money now. Are you holding this as a long-term play? Are you expecting tech to turn soon?
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You mentioned you are long MSFT. Would you share your thesis here? Are you long for the Entertainment division (Xbox 360 & games)? What are the catalysts you are looking for here?
My belief is that the YHOO deal will dominate the trading in this stock for a while. Standard merger procedures are to long the target and short the buyer. Of course, Karen Finerman suggested a Texas hedge (buy both the acquirer and the target). She also has taken a position because she believes MSFT now qualifies as a value stock at these levels.
The value is compelling, but I don't see any kind of short-term upside catalyst. The mood on the Street right now is bullish on basic materials and bearish on tech. I would think there are better places to put money now. Are you holding this as a long-term play? Are you expecting tech to turn soon?