TIME

Yahoo! Should Still Buy eBay’s “Free Cash Flow”

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Image Source: eBay According to the latest from CNBC, there are five bidders left for Yahoo’s (YHOO) core business, and it’s very likely the company will make the sale to one of them soon. Many are saying that Verizon (VZ) is the front-runner, but we can’t rule out the buying power of the group led by Quicken Loans’ Dan Gilbert, who has the backing of the Oracle of Omaha himself, Warren Buffett, or a high-ball bid from private equity, perhaps TPG Capital. AT&T (T), Time (TIME), and other private equity giants KKR and Bain Capital might still be in the game as well. We think breaking apart Yahoo! or selling it outright, instead of merging it with eBay (EBAY) isn’t … Read more

Price Is Almost Always Different Than Value

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It was January 10, 2000. America Online had just announced that it would acquire Time Warner to create the largest media company. The purchase price amounted to more than $160 billion, and the combined entity was estimated to have a market capitalization of ~$350 billion. The deal was the biggest corporate merger to that date and was expected to launch the next Internet revolution, according to then-CEO of AOL Steve Case. The transaction valued Time Warner at about $108 per share, a huge premium over its price of $64.75 per share the trading session before. AOL’s shares closed at $72 the day of the announcement. Just a couple years later, things were quite different. When it reported full-year 2002 results, … Read more

Dividend Increases/Decreases for the Week Ending May 12

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Below we provide a list of firms that raised/lowered their dividends during the week ending May 12. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week The Brink’s (BCO): now $0.15 per share quarterly dividend, was $0.10. Buckeye Partners (BPL): now $1.25 per share quarterly dividend, was $1.2375. BWX Technologies (BWXT): now $0.11 per share quarterly dividend, was $0.09. Cabot (CBT): now $0.315 per share quarterly dividend, was $0.30. Canadian Pacific Railway (CP): now CAD 0.5625 per share quarterly dividend, was CAD 0.50. Clorox (CLX): now $0.84 per share quarterly dividend, was … Read more