Not sure about this theory.
My site went from 18 to 7 on Google.com and from 11 to 1 Google.co.uk for my most competitive keywords "indian food", "indian spices" etc. and has stayed there.
My Yahoo directory listing has always been in the top 5 for these and similar keywords and still is - No 2 on Yahoo.com and No 1 on Yahoo.co.uk.
Hardly seems like Google is penalising sites with Yahoo directory listings does It?
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