If the past is any guide, and it usually is to a greater or lesser extent, SPLN will continue to trade in a manner simply baffling to both professionals and the layman alike. However, there may be some degree of predictability at the current time for what occurs over the next month or two.
First, NCAA tournament-generated optimism should press the stock upward; we may see some days with gains of around 5 to 10%, perhaps even in succession. This would be supported by a fairly significant short position has been built up by speculators trying to catch the strange bouts of weakness in SPLN that come unexpectedly.
They stand to pay an increasingly dear price as mid-March approaches.
I am not 100% sold on the deal SPLN has with MVP.com, or, frankly, on the likely success of the new etailer mvp.com itself. It must be admitted, however, that the guaranteed cash does present a bit of a cushion, something lacking in most net stocks.
Regardless, at current prices, SPLN remains an 'evalue'.
There are not many, but for this very reason, it may not remain a value net stock for long.
The results have been fantastic as the site continues to expand and improve its coverage, drawing more and more users to its pages every day.
When the visitation rates for March are published, or even just anticipated, the stock could stage a bit of a run. Who knows how far it may fly?
Price target for March?
I think that any investor who has watched SPLN trade for a while must realize the absurdity of this question for such an odd stock. Remember the company behind the stock, and what it has achieved already and will accomplish in the future.
The fireworks in the next month will be biased upward, to say the least.
JM |
