Where will YHOO’s stock price start and end at on Monday?

$20-25:

- It will open at $24-ish, which is $5 less than what it closed at.
- Throughout the day it will tread down towards $20
- But it will close about $21, mainly because a lot of people bought in Friday expecting a deal this weekend.  Those short term arb traders will cover positions by selling and that will add this added effect.

There’s a psychological floor at $20 because PE buyers would step in at those prices, as would MSFT, again.

But in one week, YHOO will be closer to $25 than $20 because people are baking in a M&A takeover bid.

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