Investor-ex, it all comes down to a simple rule: don't short the (arguably) leading company in an explosive growth industry. Nothing in a long time has excited investors as much as the Internet. Why focus on what you perceive to be AOL's shortcomings when the positive story is so much more compelling for most investors? Unless the Internet's growth slows (which is unlikely) AOL is not a good short. Sure, if you can time corrections almost perfectly, any stock can be shorted profitably. But AOL has shown that it has a good formula for growth, is dynamic, adaptable, and at the right place at the right time. It is likely to do very well in the long run. I'm long.
<< So, in post-mortem fashion, here's my stab at why this dog just won't roll over. Please feel free to comment on, elaborate, reduce, or enlarge this list -- it's far from comprehensive. My hope is that, together, we might come up with a list of reasons that, on the surface, appear to indicate a really good short, but, in fact, are strong reasons to stand aside or even go prudently long.>> |
