Glenn, sometimes you should just say it's probably not a good day to be short. We've all known about the video store opening, and we know that the masses take any opportunity to find an excuse to buy. As I posted last night, I have been deliberately standing aside, in spite of the weak looking chart (as of last night). The stock looked ripe for rolling over. But at least some analysts have been expecting Amazon to move into other product areas, and Amazon delivered on those expectations last night (officially this morning, but the company confirmed the rumors last night, per Bloomberg story at news.com/investor.
I'm not surprised to see the stock at new highs, but I'm a little surprised it hit the new high in one day. All I can say is what I said last night, which was I'm glad I'm not short, but I'm not long either, so I've made zero on AMZN. The bottom line is, those who are bearish on the long-term fundamentals to support current multiples and market cap are right, but they are just simply too early.
I do believe that Amazon is out of hat-tricks, and AMZN has taken a giant step towards forcing investors to focus on fundamentals. At this point, I'm just going to be continuing to watch and see the daily action. One thing we can expect: sales for the qtr ending Dec. 31 will be "better than expected", no matter what they actually ring up in $$. For the remainder of 1999, I'll expect the stock to act very sluggish, and tilt down going into the second half.
PS - I truly hope you put some kind of stop-loss on your short shares. |
