Cramer on BloggingStocks: Ballmer’s letter should boost Microsoft shares
Posted by: in Latest NewsFiled under: Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Market matters, Stocks to Buy, Cramer on BloggingStocks
TheStreet.com’s Jim Cramer states that by showing the company won’t pay up for Yahoo!, Ballmer removed a risk to his own stock.
The large rap against Microsoft (NASDAQ: MSFT) (Cramer’s Take) was that it would overpay to purchase Yahoo! (NASDAQ: YHOO) (Cramer’s Take).
A number of analysts have been quite vocal that Microsoft would end up paying $34 for this, and that’s been a heavy lid on Mister Softee in what has been a darned good tech run, one that has led to many breakouts or near breakouts although seasonality’s a real problem.
This weekend’s news that Steve Ballmer would rather walk away than pay up — I think that’s the succinct way to put it — is great news for MSFT shareholders. Yahoo! is probably having a dog-awful quarter, especially if Google (NASDAQ: GOOG) (Cramer’s Take) has seen a click slowdown. This, of course, is all self-inflicted, as I believe Yahoo!’s initiatives and personnel changes should have led to some growth or share take.
Either walking away or keeping the bid around here would drive MSFT higher, I believe, given that the stock was in the mid-$30s when it made its bid.
Seems like a good risk/reward.
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com’s sites and serves as an adviser to the company’s CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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