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Technology Stocks : Booking Holdings (formerly Priceline)
BKNG 4,766+4.0%Nov 21 9:30 AM EST
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To: Joe Mintz who wrote (2362)5/1/2000 7:24:00 PM
From: Victor Lazlo  Read Replies (1) of 2743
 
<<
(Shorting a stock with the long-term running against you represents a reliable route to ruin. In the short-term, it bears a close resemblance to gambling with unfavorable odds.)
>>

For many public companies, that would be true. But being long on a co like PCLN that issues new shares to buy inventory to sell to consumers is also extremely risky.

Whatever paltry earnings this co may ever earn will be sucked below the horizon by the ongoing and seemingly infinite no of new shares that will be cashed into the float by PCLN's "partners."

It is clear that the hotels, airlines, grocers, etc can do this themselves, it is simple. So how can pcln bribe them to sell inventory to pcln? Simple- give them inflated shares of priceline that they can later sell for cap gain, instead of selling their inventory the real way and declare "income". It's a big game.

So the big news items will continue to be counteracted by the ongoing float bloat. If pcln loses its lawsuit against msft, look out below. If pcln has to switch to honest revenue accounting, look out below also.

I am not, and have never been, either long nor short pcln. I have never had a position in the stock.

cheers!
Victor
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