Stock Idea: Yahoo! Inc. (YHOO, $16.85)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Yahoo! Inc. (YHOO) is an online media company. Yahoo benefits from a trend for companies to increase the portions of their advertising budgets which they spend online.

Yahoo is expected to take a brief drop in profit in 2011, then increase profit again in 2012 and 2013.

The stock price is recovering slowly from the financial meltdown of 2008, at which time it hit a low of $10 per share. Then Yahoo stock settled into a trading range of roughly $14 to $18 per share. It appears ready to climb again. I would buy now, and then protect my profits with a stop loss order, raising that periodically as the stock price rises.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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