PALM has pain written all over it...I called a bottom on this thread at 102 earlier today...Briefing called it at 100 later in the day (gee, I was off by only 2%!! and lost money in spite of that fact!)...in either case, intersting read:
13:40 ET ******
Day Trader : Aren't high profile IPOs supposed to go up, straight up, and nothing but up? Many a sophisticated, amateur investor on the phone with their online broker right about now attempting to ascertain why their buy order was filled at $155 when the stock opened at $145. But more important, why their sell order was filled at $120 or lower, though the stock was trading at $130 at the time the order was sent. The answer they're receiving: Fast Markets. Under these conditions, anything goes. Not only are execution prices almost criminal, but trade confirmations are often delayed by ten minutes or more, leaving investors without a clue as to if and where they own the stock. Feeling equally dismayed are those individuals who followed the media hype into shares of parent company 3Coms (COMS), betting that the success of Palm Inc (PALM 105 +67) would insure new price highs for COMS. But after rallying to $117 1/4 this morning, COMS shares went into free-fall.. As Briefing.com warned on Tuesday, the heavy selling occurred once PALM shares opened for trading. In a matter of just ten minutes, COMS collapsed 20 pts. The stock is currently trading 19 pts below yesterday's close and almost 32 pts below this morning's opening price... While PALM finally beginning to find some support, the portfolio damage has already been done... Imagine placing an order for 500 shares of Palm at the open, getting filled at say $155, then promptly watching the stock tumble 50 pts. That's a $25,000 hit taken over the course of 20 minutes.... Judging from price action in the stock on the way down, likely that many pros were also burned by PALM. These traders often look to buy hot IPOs on the first dip. To their chagrin, PALM gave several false indications of bottoming. For example, at the $123 level, traders began to lift their offers as much as 2 pts above the prevailing price; a ploy used by traders who think the bottom has been reached and the stock is primed for a 5 to 10 point pop. Saw similar price action at the $115 level and again at $107. The actual temporary bottom did not occur until PALM had fallen to almost $100 per share, down 65 pts or 39% from its high of the session... To almost everyone but the subscribers to the deal, the IPO of Palm Inc has been a misadventure. - DS |
