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No. of Recommendations: 8
Closing the barn door after the animals have escaped, methinks. Although it is unclear if Yahoo is cheap (it has potential, given its large user base, but it remains to be seen if the potential can be realized), the upside if Yahoo realizes its potential is very large, as was true for AOL years ago.

It is true that Yahoo is not a Rule Maker. But the Rule Maker strategy is a complete failure - and has no real hope of ever beating the market. Companies that meet the Rule Maker criteria are big established growth companies, and everyone agrees their prospects are great - and so they are priced accordingly. The returns from the ones who live up to expectations will be offset by the 20%-40% who, over 5 years, encounter difficulties and their stock prices get crushed.

You can only beat the market by doing something different from the market.
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