michaele23,
It sounds like you have a reasonable reason for buying, when I spoke of idiots in an earlier post, I was talking about people that buy a stock only because it has Mo, or because it is going up. At least you did some DD, that is the important thing.
I guess I just am still not convinced of the long term potential of this company. I got 100 shares from Wit Capital and 100 shares from Etrade at the IPO price earlier this year, and flipped both for basically no gain. I have traded in and out of it since then, particularly this past summer when it was in the single digits. Then, the concern was NetObjects IPOed only to pay off dept to IBM, among many other concerns. (The negative vibes on this stock were so strong around and after the IPO that frankly it is amazing it didnt tank sooner then it did.)
So, what prompted my question yesterday is I am trying to decide if the recent run is due to a short squeeze (that is still my theory, a 50% run in over two days seems like a short squeeze to me when there is no real news to justify it.) or if there is a stronger, longer term reason. I have watched stocks like Western Digital pop on takeover rumors and short squeezes in the past, so I am trying to decide if NETO is a flash in the pan or a long term hold.
By the way, whichever it is, I am convinced there is easier money to be made in internet stocks like NETO that are not followed by everyone vs. stocks like Amazon.com, particularly on the short side (short for a few hours, not overnight!) I have been burned many times trying to day trade short or long positions on the big names like Amazon.com, whereas I have made a ton on names like NETO, MQST, NETP, and other second tier names. These names seem to rise more or less in synch with the internet sector as a whole, and crash with it when it drops off, whereas the big names like Yahoo and Amazon and RealNetworks seem to never drop off too much off their high because, I think, too many people are shorting them because they are "overvalued"
Anyway, I just want you to know I did not mean to imply someone buying NETO is an idiot, only that someone buying it only because it is (or was, now) going up as the only reason is playing with fire.
Good luck to all. These boards are about helping each other make money, long or short.
bob |
