Re: Shorting Sun & Fundamentals:
"If you are a short term trader, IMHO, if you want to short SUNW based on its fundamentals then I am afraid you are too naive to be left alone in the investment world alone and I strongly suggest you to invest in a solid mutual fund rather than individual stocks. "
I love Sun. Been long a long time. But, like many stocks contributing to the market's rapid rise over the past two months, Sun very well may have gotten ahead of itself. If the company can't grow as fast as its implied rate, then yes, Sun has run ahead of its fundamentals. Then again, neither Lucent nor Cisco is growing at 75% clips and their PE's sport such multiples. Like Sun and like the net stocks, they are trading more on bullish momentum and/or "story" basis than the numbers.
Should one short Sun? I've wanted to short amzn and ebay and the other net miracles, bitter about perhaps missing out on the greatest wealth building opportunity of my life time, however, prudently I hesitated before jumping in front of that train. Momentum is one tough mother. Puts, on the other hand, on stocks where a 3 point rather than 30 point day is huge, might be a good option here- as a hedge or naked.
C'est ca. |
