Personally, I'm very surprised by the run this stock is
having. I've looked everywhere I know to look for analysts
comments, upgrades, news, etc. The stock continues to make
new highs. It hit 68 today. Decent size trades, too. Not like someone
threw a dart to pick it to buy. (Or if they did, they got REAL NICE darts. <g>)
The 4.6 million shares after the split is / should be common knowledge.
While I have absolutely no additional knowledge other than what is
publicly available, my wild guesses are:
1) IBM is having a much better quarter than had been predicted
and NEON is a beneficiary of that.
2) The stock issuance was done for the purpose of raising cash for
a company purchase that was pretty much finalized & rumors
are leaking out.
3) There is absolutely no logical foundation for the stock rise
and it will come down soon.
I'm one of the last people on earth who would short a stock, any stock! No guts. The concept of unlimited losses is more than I
can tolerate. I have nothing against anyone shorting a stock, regadrless of whether I own it or not. Eventually, the market
will declare a "winner" and the opposing positions will make the
winner even more profitable as the scramble to "dump" or "cover"
occurs.
As the late Woody Hayes said: "There are 3 things that can happen
when you pass the football and two of them are bad."
I feel the same about shorting, so my opinion is very biased.
Regards,
Doug |
