Timothy - Long term I completely agree. Years down the road, after the inevitable search engine shakeout, YHOO will probably be *the* key player.
I like YHOO the site, and YHOO the company. Management seems to know what they're doing, and they have a world class PR department.
If I had to buy some stock with the proviso that I can't touch it for 5-10 years, YHOO would be great for that.
I'm a trader, not an investor, so how dominant they're going to be years down the road is unimportant to me.
Most stocks trade at prices comensurate with their worth. The simple fact is: YHOO is not worth this much money at this point in time. Overvalued stocks tend to fall, just as undervalued stocks tend to rise.
I missed YHOO on the way up. It shot up way too far solely on emotion, a la NSCP, IOM, ZITL, all of which became juicy shorts when they were overbought, as YHOO is right now. [I got ten points shorting ZITL one day.] I'm not missing it on the way down.
In your posting you say, "Figure a drop to 25 allows you to pick up more shares for your money than the stock here at 33". That's 8 points! Why throw away 8 points??
Why not take your nice profits now, then buy even more when it settles down to a more reasonable price? Isn't maximization of profits important?
Put emotion aside, and you'll see that is the prudent and most profitable course of action.
Good luck and good trades. |
