YELP Skyrockets After Review Of Sale

'' Yelp Inc,

shares are trading higher by $3.21 at $50.21 in Friday's session. It is continuing to rally on renewed chatter that company is working with Goldmans Sachs to find a buyer for the beleaguered on online rating firm. Just last week the issue was destroyed after announcing Q1 results this missed for EPS (($0.02) vs. Est. $0.01) and for revenues ($118.51M vs. Est. $119.96M). That caused the issue to implode from its April 29 close to $39.39 the following day. After a few days of trading under $40. The Wall Street Journal cranked up the rumor mill that the company was exploring a sale. That is all the issue needed for algo's and momentum players to pile into the issue and send the shorts scrambling for cover. As a result, it rallied from Wednesday's close of $38.22 to $47.01. The speculation continues today as the issue has rallied over $50, reaching $50.44 (almost erasing all of it losses from Q1 miss) before falling back under $50. Sean Udall of the Tech Stock Strategist, speculated about the possibility of a sale on Monday and was bottom-fishing under $40. In his opinion, best the suitor for the company would be Yahoo

for two reasons. https://twitter.com/UdallTechStrat/status/596004777068142592 First of all, the company must do something to revive its stagnant growth. With the possibility of YELP producing $700-800M in revenues over the next few years, it would certainly enhance the bottom-line for the company. More importantly,Udall says YAHOO must find a tax-efficient way to depart with some of its huge cash position. With $9B in the bank already and another $44.5B in long-term investments, the company desperately needs to find a way to avoid paying too much to Uncle Sam. According to Udall, another possible suitor could be Priceline Group

, whom he characterizes as one of the "best buyers of internet assets." Along these lines, Google

is not likely to enter the fray due to all of their current regulatory issues. Based on his current projections, a fair price would be in the $50-$55 area, but could fetch a higher price if one or more participants engaged in a bidding war. For now, Udall is booking some profits in the event a deal does not come forth, but is holding onto to a portion of his stake to see how the events unfold.