Yahoo Has Room to Grow After Buyback: Haverty

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July 22 (Bloomberg) -- Larry Haverty, portfolio manager at Gamco Investors, discusses Yahoo buying back 40 million shares from Third Point, how that impacts other investors and his view of the share price going forward. He speaks on Bloomberg Television's "Market Makers."

Larry, i am looking at the stock price.

Down more than 4%. what did you think of third point selling back of these shares to yahoo!? are you annoyed?

I am not annoyed, it is a question of what side of the " new look at.

Dan loeb's business model is a hedge fund, has made over $500 million.

The utility of profits beyond that diminishes.

He has an obligation first to investors and the idea of harvesting the profit, even though a lot of and will be taxed severely, is very good, consistent with his business model.

You look at our business model, and at gamco, we are long-term investors, very tax-sensitive.

You look at yahoo!

And the attraction that we had, and dan had, the ability to participate in this asian increase as a phenomenon without really having to pay for it.

We have more or less doubled our money for our shareholders, but i do not think the game is over.

You saw the quarter from alibaba.

We met with the management of 10 cent.

We are confident they will continue to grow.

50 million people are joining the internet.

The government wants consumption in china.

Alibaba is reasonably valued.

My personal opinion is, after the public offering, $100 million, and that gets me easily to the mid 30's on yahoo!


If cory is right, that marissa mayer has turned the company around -- i have not seen the numbers to make that clear -- but if he is right, we will get a foreign bond.

Dan loeb, given his business, did the right thing.

As a long-term fundamental investor, we are still comfortable.

I think we will let our profits run.

I wonder if this marks a turning point in the leadership, dan loeb's presence there, constantly try to find the right visionary for yahoo!

Do you see that in marissa mayer?

She certainly does a great job on conference calls.

Has made over $3 billion in acquisitions.

We will wait to see if that turns into revenue and net cash flow.

I think they have done a very good job of attracting quality people, including some who have left the company.

Unquestionably, she has improved morale there.

This is like appointing a new head of a movie studio.

You need years, not quarters, to see what will happen.

The signs are, frankly, encouraging.

Our analysis of the assets of the company in the case the market is not paying for it, with yahoo!

Being valued at 0 to 4 times.

That is below what comparable company's value at.

I see a lot of potential here.

Larry hagerty, always great

This text has been automatically generated. It may not be 100% accurate.


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