Peter,
It is not a question of "if" I am right, just a matter of "when."
I do not own the stock, nor am I short, just trying to alert people who can actually think beyond what they see on CNBC that this stock, and this company, may be in trouble. And even though the stock has come down and appears to be leveling off, this might not be the time for bottom fishing. Even a new paradigm new market pundit would balk at investing in a stock with such little momentum as PCLN has had of late.
I would also check out the initiative by the SEC to get the revenue accounting rules changed for companies such as PCLN (What do you think would happen if they were forced to restate revenues down to 1/10th of what they are reporting now?)
PCLN has a workable business for some industries, but the margin is so low that even if they captured all of it, it wouldn't justify their market cap. On top of everything, their patent claims on reverse auctions is shakey, there is "prior art" here (reverse auctions have been around for quite some time), someone may challenge the patents, and win, imo.
Also, try not to sound like such a shill next time <<God knows I'll load up at $14/share :-)... shortly after will be the last time I'd bother balancing my checkbook.>>
-enam (if you wanna debate this, you better bring something better than new-era economy and wistful dreams of the bright future we will all have living in priceline-land)
PS - Value is intrinsic, over the long-term. Short-term fluctuations exist and can be dramatic, but in the end, the truth comes home to roost. This is an immutable fact, even in the internet sector. I'm not trying to rain on your parade, only to warn you that those companies with questionable models will be the first to fall and will fall the hardest. |
