Friday, September 19, 2014

 

Today I had a wonderful 13-mile run. These long runs come far too infrequently for me now that I’m working so much. While running today, I had my eye on my iPhone. About ten days ago I made a sizeable investment in Yahoo!, the stock. I anticipated the stock would rise in valuation because of an early-stage investment the company made in Alibaba. Alibaba is a Internet retailer that dominates the market in China. Since Yahoo! made the investment, Alibaba has grown into a behemoth. Today Alibaba was scheduled to begin trading on the New York Stock Exchange. Yahoo’s early investment left it with a stake of more than 22% in Alibaba. Financial news indicated that Yahoo intended to sell stock in Alibaba that would bring more than $8 billion into the company, Yahoo was still going to retain 16% equity stake in Alibaba. Taken together, I anticipated that Yahoo was undervalued and I made the purchase. Alibaba began trading today at more than $90, making the company worth more than $225 billion dollars. Surprising to me, however, was that the market did not value Yahoo!’s stake in the company. According to my calculations, the Yahoo stock price does not adequately reflect the company’s ownership interest in Alibaba. My position closed down today, but I’ll hold it a while longer, as I anticipate that Alibaba’s share will continue to rise. Eventually, Yahoo should make up lost ground—or I’ll admit that my position was wrong and take the loss. I’m hoping that an activist investor will make a play for Yahoo!, which could drive the price of the stock higher. We’ll see.

 

Days since my release from prison: 403

Miles that I ran today: 13

Miles that I ran so far this week: 34.7

Miles that I’ve run during the month of September: 93.77

Miles that I ran so far in 2014: 1,804.76

Miles that I need to run in order to reach my annual goal of 2,400 miles: 595.24

Miles I’m ahead of schedule to reach my 2,400-mile goal by the end of 2014: 76.85

My weight for today: 168