and why not???
geeez, there's one born every minute...
"judging by charts only"... you see, that's the problem with this market, everybody (individuals and institutions) judge "by charts only", and extrapolate trendlines at the same degree angle into the future, and that's how they arrive to a price target of $ 890 5/8 for the ARBAlloon.
noone ever mentions *valuations*.
besides, i think you are reading the chart wrong, it looks ominous to me.
where are the idiotic analysts who were so ENAMORED of ICGE??? they were giving strong buy after strong buy to b2b king incubator ICGE when it was worth **$ 55 billion** (more than American Express at the time) and the sky was the limit to how high it would go? where are they now? they are silent and hoping noone remembers what they said back then.
where's the Blodget-boy clown at Merrill Lynch, who gave strong buy after strong buy to INSP at $ 138 ($ 25 billion market cap)???
what about those raving analysts drooling for YHOO at $ 500 ($ 125 billion market cap) early this year??? Microsoft.NET has the potential to bury Yahoo alive, but you can't expect those clowns to realize that fact or that threat until its too late.
there's no way on planet earth i would pay $ 40 billion for a software company selling $ 160 million and losing $ 490 million a year, no matter how bright the future, how fat the margins or how big the market opportunity; except as a day/swingtrade, but i would run for the hills as fast as possible as if holding a time-ticking bomb.
as i said in early march on the INSP thread, don't let a placid and tranquil looking chart (so far) make you forget the enormous risk this stock carries with it.
one trendline violated, a disappointing quarter, and swoooooosh, down in flames...
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"Does anyone know why ARBA's down 7% today? I haven't seen any negative news or announcements, and judging by the charts only, it seemed like a good time to buy." |
