Jeff, I just covered my short today at $51. You ask what prompted me to short GATE - if you read my first couple of posts on the topic, you will find an answer, but in the main: it was the contrarian thing to do, it was consistent with my beliefs about the company, and a contrarian strategy often works well around earnings time...today Lehman downgraded the stock - one of the things that I had mentioned I didn't like about GATE was the fact that it was at the top of every analysts list. I know that GATE's earnings are good, but good earnings just aren't good enough in this market environment.
At $51, I think GATE is fairly valued, but I still think there's a good chance that, in the long run, this company could lose out. I would rather hold Dell - and it wouldn't surprise me if Dell fairs better in a couple of weeks. But I'm out of this, at least until the next round of earnings.
Dylan |
