>>Contrary opinions are welcome as long as they are supported by reason.<<
Actually, as of today, I'm short SEEK, too. And here's why:
1) SEEK's chart in October. The stock has had a big run-up; it's due to give back some of these gains.
2) For the first time in the past few weeks, SEEK showed big intra-day weakness today; I feel this will continue.
3) Earnings are due. And although I feel SEEK will beat estimates, post earnings we'll see a sell-off. (As is common with many Internet stocks, SEEK has been run-up prior to earnings, and will be sold off after earnings.)
4) We've had an impressive run-up this past month in the market overall. At some point we will have a retracement, and the first to get hit will be high-tech stocks, and of these the Internet stocks.
FWIW, I don't "hate" SEEK. Long term, I feel the top name Internets are where the money should be, and SEEK in particular (with Disney's support) should do quite well.
Yet I'm a trader, and right now SEEK looks like a good, short-term short...
regards,
JS |
