Secondary Offering Doesn’t Outweigh Cash for Russian Search Engine

By Paul Ausick Updated Apr 28, 4:33AM EDT · Published Mar 13, 10:10AM EDT

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Russia’s largest search engine, Yandex N.V. (NASDAQ: YNDX), announced a secondary offering of more than 24 million shares after markets closed last night, and the stock promptly fell 8%. But all is forgiven this morning.

The offering included only shares from some of the company’s largest shareholders, and Yandex did not share in the proceeds. The share price slide failed to take into account Yandex’s cash hoard of nearly $1 billion, which several analysts were quick to point out. At least one analyst thinks that Yandex will use some of that cash for a special dividend.

Yandex stock is essentially flat to its price of a year ago, while shares of Yahoo! Inc. (NASDAQ: YHOO) are up 53% and Google Inc. (NASDAQ: GOOG) shares are 30% higher. Only China’s Baidu Inc. (NASDAQ: BIDU) of the major search engines/portals is down. As of mid-February, Yandex searches outnumbered searches on Bing, the search engine from Microsoft Corp. (NASDAQ: MSFT), and the Russian service became the world’s fourth largest search provider.

The price target for Yandex is around $31 and shares are trading at $23.52 in the first half hour this morning, after last night’s nosedive. The 52-week range on the stock is $16.65 to $28.14.

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Disclaimer: Energy Exploration Technologies, Inc. ("EnergyX") has engaged 24/7 Wall St to publish this communication in connection with EnergyX's ongoing Regulation A offering. 24/7 Wall St has been paid in cash and may receive additional compensation. 24/7 Wall St and/or its affiliates do not currently hold securities of EnergyX.

This compensation and any current or future ownership interest could create a conflict of interest. Please consider this disclosure alongside EnergyX's offering materials. EnergyX's Regulation A offering has been qualified by the SEC. Offers and sales may be made only by means of the qualified offering circular. Before investing, carefully review the offering circular, including the risk factors. The offering circular is available at invest.energyx.com/.

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.