Hey guys,
GMAI a stamp auctioneer bought Teletrade, an internet auction site, for $6 mil and the stock goes to $20 from $2. I shorted it from 16 to 12. I really was surpised it did not drop back down to $5 the next day. After I covered it went to $16 again. This is crazy. GMAI, BFLY, INFO, these companies do not deserve their valuation. These are companies with impending dilution and week financial postion. They don't even compare to AMZN, YHOO, etc...
However, perception is reality in this market, and there is perception for the time being that anything that is interent is gold. I can't believe COOL. This is ridiculous. I don't know if anyone visited its site, but it does NOT seem to deserve $800 million value. A lot of second rate software at the site.
I agree with Jay and others that a correction will come, and these stocks, even YHOO AMZN will crash. I think the crash will occur 12/26, after xmas, when the hype about ooooohh, consumer spending on the internet, turns out to be a load of crap. This is like nineteenth century trading of railroad stocks are the tulip craze in Europe centuries before. This bubble is going to burst. The question is when.
Until the Big Kahuna arrives, I think shorting will be difficult to time, as I learned with GMAI. GMAI will go down, but I am not interested in having it fluctuate in my face. With GMAI I learned the key in shorting suck-ass internut stocks is to short and cover quickly and be happy with a few points, because it can rebound and smack you in the face, even the garbage ones, if u can believe it.
I saw COOL go from 8 to 45, and it almost made me throw up watching it. If COOL, than why not the heck EGGS. Hell, just buy Radio Shack because I hear marv the assistant mananger just signed up to AOL. This market is crazy. But it did get me searching for stock connections to any half decent website that sells crap on the Internet. So instead of coming across another slam dunk garbage short, I've found an underpriced Internet long, if you can believe it, that has power. Ziff Davis! ZD $12
What a boring company, i thought to myself! It is known only for losing money in its magazine business. I had no idea it was on the Internet, and in a big way too. zdnet.com is the site.
This site actually kicks ass. U can download software like COOL, there are financial and stock talk boards like on Yahoo and Silicon Investor, and there is lots of other stuff. This website is backed by a major magazine publisher. That means it has content and easier marketing access. I am impressed by the website, at least compared to COOL, which is pretty sad if you go through it. What is funny is that the Internet connection to ZD has not been fully made yet. I just picked up on it today. ZD is worth $1.2 bil today. COOl $0.8 bil, YHOO $16 bil. I am going long on ZD tomorrow because it has a serious kick ass website that sells crap autions crap and downloads crap but has a serious media content provider backing it. So I am going long ZD. I tried shorting COOL today but no stock available. Sure Ziff is losing money, but if COOl can do it, well, what the )#$*), so can ZD. Am I learnings something about this market?
Little long winded, but keep posting the garbage stocks. BFLY was a great short, to whoever suggested it. There will be hundreds of others coming out of the woodwork in the next few weeks. 30-50% one to two day shorts. Like BEAR, 1 to 6 to 3. Or GERN, 5 to 25 to 10. Not internet stocks, but you get the point. $5 mil market cap companies that trade 1000 shares a day that go to $100 mil market cap companies trading 4 mil shares a day deserve an automatic short.
Also will short ATVI on 12/26, no matter what the price because it is so predictable, but that is another story. good luck, keep the garbage picks coming...
Lord Smooth |
