Yahoo! (YHOO) NewsBite - YHOO Falls As Icahn Files Proxy

Posted on Monday, July 14, 2008 10:10 AM
Yahoo! (YHOO) opened at $23.12. So far today the stock has hit a low of $22.49 and a high of $23.24. YHOO is now trading at $22.49, down 1.08 (-4.58%). After hitting a one-year high of $34.08 in October, the stock hit a one-year low of $18.58 in January. YHOO shares are declining this morning after billionaire investor Carl Icahn criticized YHOO's board, accusing it of neglecting to disclose critical details of Microsoft's (MSFT) buyout offer. Icahn also filed a proxy on Monday to nominate a slate of nine directors to replace YHOO's board and chief executive officer. Technical indicators for YHOO are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $27.50 range. YHOO hasn’t been above $27.50 since late May and has shown resistance around $24.50 recently. This trade could be risky if the company ends up agreeing to a deal with Microsoft in the coming month, but even if that happens, this position could be protected by resistance YHOO might find at its 200 day moving average, which is currently around $26.50 and falling. [LHF- Seven Summits Strategic Investments NewsBite]
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