I’ve been watching Yahoo the company and Yahoo the stock for over a year, and finally put my money where my mouth is and picked up 600 shares at 25.31

I feel the stock is really undervalued due to what should soon be a huge wash of new cash that Yahoo will get next spring from the launch of the publisher network to a wider audience.    This is Yahoo’s version of Google’s adsense which nets Google about 43% of their revenues and growing.     This is the long tail money and I think the smart money says the long tail money will eventually be the big money.   In the old days I would have thought “Wall Streeters MUST understand this process and thus the price MUST already reflect this”, but after the internet stock meltdown it was clear that Wall Street did not understand many aspects of the online economy and didn’t care about them much anyway.

Also important to my decision was that Yahoo’s been doing the best 2.0 stuff for some time.    For example today’s Yahoo Hack Day, a special event open to developers from all over, is a brilliant example of how Yahoo! wants to take back their old reputation as the coolest company and may just do it.

They deserve to be treated much better, both by online commenters and by Wall Street, because Yahoo!, far more than Google or MSN, is coming up with both simple and complex developer tools to facilitate the new internet, which is shaping up to be a monstrous, layered, interconnected, cross referenced and community-fied ocean of information where distinctions between websites and even businesses are broken down along the lines of what people need to learn and need to do.    That’s cool.