(OFF SUBJECT)
Hi Charles,
I have shorted Yahoo in the past as well. I have posted on the Yahoo thread concerning the overvaluation of the stock...however, sometimes reality and technology stocks fail to meet...
However, recently (Since around December the 8th, when the stock took a major momentum jump ) I have become very careful with this stock. Sometimes you can't logically apply fundamental analysis to these high flying technology stocks...sometimes they do indeed defy logic....not sure specifically what the "typical investor (if there is such a thing) believes about Yahoo..but on the Yahoo thread alone I have heard shareholders explain that the company "owns a browser", or "is an information service like AOL", and other remarks....quite frankly I believe many of the investors simply hear the word "Internet" and buy into the hype, regardless of stock price, valuation, realistic earnings expectations....
As long as people are willing to do this, the price will continue to rise..this seems to have been the case recently if you follow the stock's trading trend..it only became "bogged down" (and then only minimally) for a few days as the tech sector took some big hits last week. Something else I have noticed about this stock..their market makers are as efficient as any Las Vegas blackjack dealer I have seen..note the high spreads between bid and ask...watch the ask price zoom sky high on little or no significant volume...note the way they hold the line under light volume when downward pressure is applied...
To sun it up, this one scares me as a short right now...logicaly it makes sense to be short this stock..but logic doesn't seem to apply towards Yahoo...I would say be careful and keep tight loss control on this one..
Eventually this stock will fall hard when investor expectations fail to materalize...but how many nights of good sleep can be lost between then and now ?
If the momentum changes on this one..I assure you though, I will be shorting this stock like there's no tomorrow ! |
