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Best of the Blogs: A Case for Yahoo's Stock Doubling


Plus, two views on the meaning of the junk bond rally.

This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.

The Wall Street Journal: Deal Journal
Link: Why Yahoo Stock Could Double [VIDEO]

"Yahoo (YHOO) stock has lost half its value over the past seven years. It sells for just under $16 a share, a level it first hit in 1998, when '56k' dial-up modems were the hot new item for Internet users.

"But investors with an appetite for risk should nonetheless consider a purchase of Yahoo shares. The company has an good opportunity to double in value over the next three years, writes Jack Hough."

The Reformed Broker
Link: Junk Bond Investors Are DTF

"The junk bond rally -- and the whole investment grade corporate bond rally for that matter -- can be looked upon from two opposing viewpoints. The optimists will tell you that it is a sign of underlying strength in the economy, denoting the fact that US creditors are comfortable with the risks involved with lending to these companies. The pessimists will tell you that the creditors will be proven foolish and eventually lighter in the wallets, so who cares what their willingness to lend may signal?

"Below I've got a smart take from both an optimist and a pessimist on the junk bond rally and the fact that investors in the high yield market are DTF (Down to Finance) [.]"

Link: Green Light for Dell's $2.4B Takeover of Quest Software

"The US Federal Trade Commission has approved Dell Software's (DELL) proposed $2.4 billion acquisition of IT provider, Quest Software (QSFT).

"Dell beat out an alliance of private investment firm, Insight Venture Partners and Vector Capital, in a two-month bidding war. As Reuters today reported, the acquisition is core to Dell's vision to reduce its dependence on the personal computer market.

"The deal is still pending, but is expected to close this September. This would be the second largest acquisition in Dell's history, only exceeded by the purchase of Perot Systems for $3.4 billion."

Link: Jeff Bezos Hijacks to Announce Education Initiative

"Amazon (AMZN) CEO Jeff Bezos took over the homepage of Monday to announce the company's tuition-credit program for those employed at its fulfillment centers - those colossal warehouses where Amazon merchandise is stored and shipped.

"Amazon is now offering to pre-pay 95% of the cost of courses that will aid careers in high-demand and well-paying fields - think aircraft mechanics, nursing, dental hygiene, medical lab technologies, machine tool technologies, computer-aided design - regardless of whether they'll be useful to a career at Amazon. The program is open to those who have been employed full-time at an Amazon fulliment center for three or more consecutive years."

The New York Times: Economix
Link: A Closer Look at Middle-Class Decline

"No one can accuse the presidential campaign of ignoring the American economy or the plight of the middle class. Yet the scale and the complexity of the problem are typically lost amid the charged back-and-forth between President Obama and Mitt Romney.

"For the first time since the Great Depression, middle-class families have been losing ground for more than a decade. They, and the poor, have struggled particularly badly since the financial crisis led to a global recession in 2008. The idea that living standards inevitably improve from one generation to the next is under threat. Many of the bedrock assumptions of American culture - about work, progress, fairness and optimism - are being shaken. Arguably no question is more central to the country's global standing than whether the economy will perform better in the future than it has in the recent past."

Link: Fairfax Financial Doubles Down on RIM

"Research In Motion's (RIMM) downward spiral has sent investors fleeing into the woods over the past year. But not Prem Watsa's Fairfax Financial (FRFHF). The Toronto-based investment firm has been quietly buying up shares in the beleagured BlackBerry maker for months now, staking out an increasingly larger position. Indeed, back in January, Fairfax was RIM's fourth-largest shareholder. Now, just seven months later, it's the company's largest.

"According to a recent regulatory filing, Fairfax has nearly doubled its stake in RIM. Back in January, it owned 5.12% of the company. Now it owns just under 10% - 51.9 million shares, currently valued at about $356.2 million."

Twitter: @ChrisWitrak
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