>Was there any news, or a delayed reaction to the earnings?<
Tom,
There were news today like a new SEEK server in effect and Merrill Lynch starting coverage. However I don't think it's the news propelling it. Earnings are due Friday and I think expectations are mounting up along with the notion that this stock has stayed relatively undervalued compared to its peers. Merrill Lynch, by the way, started coverage of all 4 search engine stocks. SEEK up 16%, XCIT 13%, LCOS 7%, and YHOO 3%.
I think in the long run XCIT and YHOO will come fairly close since XCIT is making shifts (community concept, personalization etc.) to catch YHOO. IMO SEEK should be at least half of LCOS wihich is at 70's now. That would make my target over 35 provided LCOS stays up or keeps going up. SEEK's strength is its search engine. It does not have the community concept established yet though.
PS: These stocks are very very extended. I'd be very careful considering them. Look for temporary weaknesses and short term dips to get into stocks like YHOO, SEEK, XCIT, CMGI, GNET, AOL, NSOL (darn I eyed this one at 23 and never bought it), LCOS, OZEMY. I think there is still some steam left. But once the music stops there will be just a few chairs to sit :-))) |
