Monday, July 18, 2011

Betting on Yahoo

My biggest long position right now is Yahoo. I own the shares as well as 2013 call options.

Yahoo's 43% stake in Alibaba holdings (Taobao, Tmall, Alibaba.com, Alipay) could have a value of more than Yahoo's current market cap.

The wait for Alipay settlement is killing. But eventually i expect it to be a resonable settlement.

Jack Ma cannout afford to go against Yahoo and Softbank as they own more than 70% of Alibaba holdings. Alipay also receives over 90% of business from Alibaba holdings websites.

Yahoo and Softbank has considerable control over the situation and are not credited by market for it.

Have to wait for a few more days for the good news.

Buying Tiger Airways

Tiger Airways is a low cost airline operating in SE Asia and Australia.
The stock has taken a severe beating as CASA has landed its sustralia operations due to security concerns.
Market and analysts have been speculating that Tiger might have to exit Australia.
Aug first week, the decision will be know. I am of the view that Tiger will resume service in the first week of August.

The company recently put out a news release stating it expects to start service in Aug. The CEO has bought some shares recently, showing the the negotiating with CASA is moving the right direction. Tiger also just announced hiring of a ex Quantas professional as head of safety.

All these make be believe that Tiger should be able to restart Australia operations in August. That should get bids back into the stock.

This is quick trade, I plan to exit by mid or end Aug.

Tiger is trading at SGD 1 right now, expect it to move close to SGD 1.2 if the Australia operations restart.