Well, George, you needn't worry about the NSOL/VRSN divergence today, for two reasons:
1) According to the Yahoo NSOL board, NSOL was actually up four points after hours, while VRSN was down 2 1/2.
2) More importantly yet, again according to the Yahoo message board, the NSOL/VRSN merger took place today. That means that as of tomorrow, you will be a VRSN, not a NSOL, stockholder.
Personally, I don't think I WANT to be a VRSN stockholder. NSOL is the only internet stock I own(ed), and I bought it only because unlike 99% of the companies in the industry, it was a profitable as well as a growing company. It was possible to analyze its stock just as one would analyze the stock of any other company in any other sector, using such conventional methods as p/e, ROE, ROA, etc.
I haven't the faintest idea how to evaluate all these no-p/e companies with negative ROE, etc. And I have no idea what makes their price whing-whang up and down, often as much as 20% in a single day. I bought NSOL at 58+ about a year ago, and see no reason why it (or rather, VRSN ) should not go down to that level again. What has changed?
jbe |
