ETF Guide
Line
# 1 FREE Exchange Traded
Funds Newsletter
Join the ETF Revolution! Keep up
With The Latest News & Trends
Line
Advanced Search
Welcome, Please Log In
 
twitter   rss  
# 1 FREE Exchange Traded Funds Newsletter
Join the ETF Revolution!
Keep up With The Latest News & Trends

Subscribe Bookmark and Share
Back 
Playing the Yahoo! Soap Opera
Playing the Yahoo! Soap Opera
By, Ron DeLegge
Apr 14, 2008
How can investors profit from the multiple possible outcomes?
 

It’s been almost three months since Microsoft (Ticker: MSFT) made its $31-a-share bid to buy Yahoo! (Ticker: YHOO) and the drama surrounding the proposed deal seems to have no end.

 

Other possible suitors, like News Corp. (Ticker: NWS) have stepped up to the plate and could complicate matters. News Corp. owns the popular social networking Website MySpace.

 

Then there’s AOL. Remember them?

 

Yahoo! was reportedly close to an agreement to buy the once-upon-a-time juggernaut from its current owner Time Warner (Ticker: TWX). In the end, Time Warner would get a 20 percent stake in Yahoo! and the right to buy more shares in the company at a higher price than Microsoft’s proposed offer of $31.

 

How can investors profit from the dizzying array of possible outcomes?

 

One smart way is to forget playing guessing games and to simply own a technology exchange-traded fund (ETF) with market exposure to the key players.

 

The Technology Select Sector SPDRs (Ticker: XLK) and the Vanguard Information Technology ETF (Ticker: VGT) both have a broad collection of technology stocks, along with exposure to Microsoft, Google, and Yahoo!.

 

If you believe Yahoo! will end up in the hands of a media giant, the Consumer Discretionary SPDRs (Ticker: XLY) contains News Corp. and Time Warner.

 

XLK just follows technology stocks that are members of the S&P 500 and VGT follows an all technology index assembled by MSCI.

 

Technology has been one of the hardest hit industry sectors this year. Through the April 11th market close, XLK is off by 15.3 percent and VGT is down 14.7 percent.

 

If you’ve ever wanted to own technology stocks the time to go shopping is when they’re down and out – not when they’re touching all time highs.

 

Technology ETFs are an excellent way to play the buyout soap opera, no matter who ends up owning Yahoo!.  

 

Is your portfolio beating Wall Street’s overpaid fund managers? Sign up for ETFguide’s 30-day free trial. Click here!

 

Top 5 Most Popular Articles:

What Will It Take To Get The Stock Market Back On Track?
Finding The Right ETF Made Easy
Actively Managed ETFs, Will They Rock Or Roll?
The Devolution In ETF Research Is Alive And Well
9 Ways To Thrive During Market Turmoil

 
Subscribe Bookmark and Share
 Rating
0 (15)
 
 Comments
No Comments found.
 
 Add Comment
Comment:
Your Name:
Your Email: (Email will not be displayed anywhere)
Verification Code:
 
 Author Profile
Bullet Ron DeLegge
  ETFguide
  Editor
  Ron is the Editor of ETFguide.com, voice of the Index Investing Radio Show, and author of Gents with no Cents: A Closer Look at Wall Street. (Half Full Publishing, 2011.)
  http://www.IndexShow.com
 Other Research from Author
How the EU’s Membershi...

Is the IMF’s $600 Bill...

Should You Buy into th...

Foolish Business Momen...

Does Your Portfolio Pa...

Ads
©2012 ETFGuide.com All rights reserved.
For more information regarding use of this site, please review our
Sitemap, Contact Us, Resources, Advertise with Us, Privacy Policy and Terms & Conditions,Webmaster
Web designed and Powered by BimSym eBusiness Solutions, Inc.