Three Major Items

Bulls,


Three huge items the Bull must talk about.

1. Yahoo

- As many of the Bull's loyal readers know the Bull is not a fan of Yahoo in any sort of way so the Bull's following comment might be a shocker. The Bull thinks Yahoo is a buy! Now Yahoo is not going to have another 72% jump like it did after MSFT announced plans to buy but if yahoo can secure a 33 dollar sell price then you will see an impressive 18-19% jump in the stock.

Why is the Bull so bullish all of sudden. The Bull believes in following the "whales" and outside of Buffet, Ichan may be the biggest in the game. Now what Ichan specializes in is hostile takeovers and proxy fights. Exactly what he is getting involved with here.

This yahoo board has been in place in four years. During that time the nasdaq is up 30% and Google 440% but yahoo has been flat. This is unacceptable and Ichan has put his own slate of board members up for election. The meeting is July 3rd and the Bull might be in attendence just to see the fireworks.

Within Ichan's ten prospective candidates for the board are some interesting names. Marc Cuban who sold broadcast.com for 5 billion dollars to yahoo, and therefore knows how this yahoo board likes to negotiate. Adam Dell, the brother of Michael Dell, and Lucian Bebchuck who is one of the most respected figures in the academic world in terms of mergers.

But there is one other key ingredient besides Ichan and his 59 million shares and 10 million call options. John Paulson who runs the hedge fund Paulson and Company, made billions this past year by betting against the market due to predicting the subprime mess. He made 3.7 billion dollars personally and was the top earner of any hedge fund mangers(BRK is not a hedge fund and therefore Buffet does not count). Well turns out according to SEC reports that Mr. Paulson himself has acquired a 3.7% stake in yahoo by owning around 50 million shares and he too is demanding change.

Who would not want to go into the trenches with these two giants?

2. 5,000 Cancer Drug Reports Released tonight at 9 PM ET time.

- The American Society of Clinical Oncology every year releases their findings on different cancer drugs. They hold a conference towards the end of May each year where the discuss the blockbuster names of the bio-tech world and their findings. In years past, the ASCO would release their findings to around 25,000 doctors and reporters a few weeks before the conference and then the hawks on Wallstreet would begin paying these doctors substantial amounts of money in exchange for the ASCO results before they were officially released.

As a result, this year the ASCO is releasing almost 5,000 detailed reports on different cancer drugs all at the same time to anyone who has a computer. Log onto asco.org at 9 a clock eastern and the reports will be there for all to see. Now there are a few blockbuster names that they are keeping in store until the conference but the results tonight will shake the Biotech world for the rest of the month.

All the big names such as DNA, PFE, LLY, CELG, ONXX and OSIP will be affected. Personally I am watching for some movement in ARIA and and BMY.

It is hard to predict what will happen and people will be up all night trying to figure out how these findings should affect the stocks. I think the safest bet is to long straddle the volatile cancer related bio-tech stocks.

If you see any huge announcements(IMCL last year) plastered on CNBC, I would do my best to get in pre-market or as early as you can. Also look for a huge drop and maybe try to catch a big comeback play.

3. The Intelligent Investor

- Easily the greatest book ever written on the principles of investing. If you have not read this book, rush down to your nearest barnes and noble and pick it up. I recommend the newer version with commentary from Jason Zweig. I will comment on the book as a whole another day but the book is written by the famed financial mind Benjamin Graham who was the mentor to a young Warren Buffet.

This book will change your life and the way you approach the market.

The Bull is off to play a round of golf.

The Bull