I noted on my video market recap yesterday that the hiring of former Google executive Marissa Mayer by Yahoo! was the news du jour. There is no telling what effect the affable and politically connected Mrs. Mayer will have on the struggling, mature brand. What we do know, looking at the chart, is that periods of compression often lead to periods of explosion. The weekly chart of YHOO is now about as compressed as it can likely get. Note how the stock has basically been dead money since its crash several years back.
The ramifications of a change at the helm are always things that the market struggles to interpret, but Mrs. Mayer’s timing may very well prove to be spectacular with some resolution to the upside, which should be a very powerful one given the coiled spring for several quarters now.
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but would you buy YHOO here? This seems to be a case where fundamentals outweigh the technicals. I mean, I would buy it on the basis that Marissa is hot in a perverted way…but as far as the com[pany goes..hmmm.
I would definitely buy if it started to show signs of resolving higher above $16. Price is the ultimate arbiter.