YHOO: Yahoo to rally on Alibaba success

Alibaba Group, a holding company which owns a number of Chinese Internet properties. Yahoo owns a 39% stake in the parent company, which maintains a 75% stake in the spinoff, as well as a a direct stake of 1.2%. YHOO has 1.34 billion shares outstanding. YHOO was trading at $29/sh & at a $38.86 billion mkt cap before the headlines about the Alibaba listing. If Alibaba is worth $7 billion after the IPO debut, then that is 18% of the mkt cap of YHOO. If shareholders believe the Alibaba valuation can stand the test of time, then perhaps YHOO shares will gain 18% from the $29 level to compensate for this good news