Look over charts of both XCIT and SEEK from April 1997 to now. It's interesting. If you map their relative performance, arbitrarily taking Jan. 1, 1997, as the baseline, you'll see that XCIT and SEEK matched each other's performance until about May. After that, XCIT outperformed by a large margin. In fact even after today's huge run-up, based on the same relative performance plot, SEEK is still trading at half XCIT, having been as low at 1-to-3 in October and early February. Following the April divergence, November was SEEK's peak relative to XCIT, when it was trading at 0.6.
I'm not sure what all this says, but my feeling is SEEK has room to move, especially with better management and growth rates that are improving relative to XCIT and the other engines. For example, if XCIT hits 90, which isn't inconceivable, were SEEK to come in at the high end of its price tracking range of late, it would be $54. I'm not hyping or predicting, just observing.
Incidentally, check out Bloomberg's tech section piece on SEEK. Apparently about 65% of the float traded today, though that might be misleading given Nasdaq's reporting style. SEEK's market cap is indeed a billion dollors. But bear in mind the XCIT's is $1.8 billion, while YHOO's is well over $5 billion. Here's the link:
bloomberg.com |
