Here's the news on Bluefly, another online apparel retailer...
BFLY (BFLY - 29.2%) and WWWFX (The Internet Fund - 10%) jump again. I've
just updated my WWWFX page
with the latest
news (http://www.netconductor.com/internet/bluefly.txt) and below. But I remember
someone said no futures options are traded for BFLY. Yet, you can sell short on it
(someone else pointed to a YHOO finance board showing short interests!)? How much
of the stock is being traded on margin as a put option if it is happening? Anyway, this is
the latest news. Let me preface by reminding you I own some WWWFX and that you
should note BFLY volatility before buying in...
[NOTE - LATEST UPDATE (1/20)]: A totally frantic day for BFLY again on
Tuesday January 19th! With volume at almost 2 million shares, trading
activity was nearly 320% of normal levels! The stock had another
run-up with a sharp 29.17% gain. What is driving this gain?
---
Is the market now trading its Net picks based on Ryan Jacob's decisions?
A diversified (30 stocks) portfolio returning 323% in a one year period
(at one high point in January) does get the attention of market watchers.
The Internet Fund recently announced on their webpage that Bluefly (BFLY)
was the latest addition to their portfolio. It appears that the webpage
was updated with this info sometime around the night of 1/13 or morning
of 1/14. Earlier (between 1/11 and 1/13) the price for BFLY was
relatively stable.
Things began to change on the 14th, when BFLY gained 18.59%. What makes
this sharp gain even more surprising is the fact that the Net sector as
a whole was battered that day. And on January 15th, BFLY gained
another 16.76%. Out of WWWFX's top 25 stocks, this was the best gainer
for the day, by more than double the gain of the #2 performer (Verisign,
at +7.75%.) on trading volume 51% higher than normal. In late December,
BFLY called their outstanding stock warrants. Ever since that time,
there has been ABSOLUTELY NO breaking news from the company. The lack
of announcements from the company is due to the SEC imposed 30-day "quiet
period" imposed after the warrant call. Thus, all of the recent trading
activity has been taking place with no breaking news or significant change
in fundamentals. In all probability, any addition to the WWWFX
portfolio is closely followed by other Net stock traders.
Whenever stock analysts at major brokerages upgrade a stock recommendation,
the stock price tends to react favorably. Yet most of these analysts do
not cover young Net companies. No major stock analysts have initiated
coverage on Bluefly. So Jacob's endorsement may be the closest thing the
market has to an analyst's recommendation in the case of nascent Net stocks
like Bluefly.
---
tulipmaniac@netconductor.com netconductor.com
The Internet Fund Fan Club
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