The Big Mo is the only reason I see. This stock was considered a dog IPO when it came out earlier this year (for many reasons, see past posts for details, most of which are still 100% valid) and considering earnings last time, I dont see anything to change that. I'm thinking maybe it is a short squeeze, that is the only reasonable reason to be buying (Well, that and you know there are shorts, so you are buying hoping they buy to cover, etc) But for long term, I cant see the logic in buying.
I've got a long day position I set back up today to day trade at 18, and didnt get it closed out, so I am long overnight. I only bought it for the Big Mo, I would be interested in hearing if anyone is buying for any other reason. In particular, I am interested in knowing what has changed about this companies outlook vs. its outlook when people were dumping it in the single digits earlier this year. This stock would seem to be a prime short candidate AFTER the current net mania subsides, but until then, shorting is crazy because idiots will continue to run it up. I intend to stay long until then.
I dont see a buyout as an option due to the high dept, huge losses, and really a product that is in a very tight space in terms of competition.
--bob |
