Not surprisingly, the brief rally appears unsustainable. My speculation is that the only demand for the stock is:
1) individual investors still enamored by the bs the oozes from USWeb's press release machine; small lots
2) short covering
Rethinking the name change, my guess is that it's actually a plan in anticipation of the crashing of the USWB stock price and any associated good feeling investors had about the company. Just as the stock price hits a low in a couple of months, VOILA - we have a new company, and the whole game starts anew (likely with a similar finish).
As a post-mortem (for all intents and purposes, I believe this stock is dead): the real failure by management was a belief that the bs machine could influence the acquirees to hold their shares. But, alas, the acquirees being in the best position to know how much their own shop was worth and then comparing that to the price that US Web paid in shares, and SELL was the only logical action.
You simply cannot buy 30 shops, each worth $1,000,000, throw a new name on them, and then convince people that the whole is now worth $120 million. <this is an example only>.
One Man's Opinion,
Rick. |
