One needs a strong stomach for these stocks. As I stated previously, Seek excepted, they were headed down prior to President Clinton's comments. Because they have a lot of short sellers and lowish liquidity, they move dramatically in both directions. The big move was therefore probably fueled by short covering ... but these shorters are just waiting to step back in so the downturn can be just as dramatic.
Just for everyone's info, I noticed last year/early this year, that there was considerable manipulation of some of the internet stocks. I noticed it first when I shorted Lycos and some mm would support the stock, and then in the afternoon, once volume dropped off, some large blocks would be bid. Asia eventually allowed me to get out okay. Then I noticed that the same thing started with Xcit - and the support for Lycos disappeared at the same time. Lycos tanked and Xcit started climbing quickly. On a couple of shaky market days when everything was tanking, the support eventually stopped, but there was some hefty afterhour trades to drive the price back up. Low and behold, the pattern rotated into Seek, but was short-lived (only a couple of days if I remember correctly) as the overall market was so depressed. Guess what .. simultaneously Xcit went down quickly. Now ... as has been suggested previoiusly I believe, there is a certain Jeff V. who makes a good deal of money by finding stocks with lowish liquidity and a large number of short shares outstanding ... and manipulating the price action upwards so that he can make them cover .. and essentially take their money from them .. thank you very much.
Anyway ... I see I've rambled somewhat, so I'll leave it at that.
The bottom line is, that along with everyone else, e-commerce is the new(ish) large growth area, and manipulation aside, most will eventually go much higher, but it will be a roller-coaster ride !. |
