September 15, 2015

Increasing long exposure to YAHOO shares

The Internal Revenue Service said late yesterday that it was unwilling to provide a letter that assures Yahoo! a tax-free spin off of the company's stake in Alibaba.

Tax rules are complicated and have specific context depending on the transaction, so I don't believe this is over yet. But my guess is that the ruling could pressure Yahoo! to put itself up for sale, as CEO Marissa Mayer is under renewed demands to perform after years of poor acquisitions and weak core-operation results.

As a result, I plan to add to my Yahoo! long at under $30/share. I'll also have more to say about YHOO in the coming days.

Other stocks Doug Kass is buying

I'm adding to the following longs: Ford , General Motors, Potash Corp, Radian and Yahoo).

Position: Long GM, F, YHOO, RDN, POT 

Originally published on September 9, 2015 via