Good morning everyone!
I just wanted to make a comment for the big group of new investors we got Thursday and will get Monday. I was in a similar situation with MALL about a month ago when it spun off UBID... so I speak from experience. On the 1st day MALL really took it off it went from something like 24 to 29 in 1 day. That attracted a lot of new buyers and a lot of people who were sort of new to investing and internet stocks. So I saw a lot of nervousness on the board that day. (The Yahoo board, not the SI board)
Unfortunately, the MMs will be shaking this stock around a lot, just like they did with MALL pre-IPO. The next day they brought the price down intraday back to the 25 or 26 level and a lot of the new people sold out because they were nervous. Also, some had stop losses set too close to the current price. MALL went on to hit the low $60s within 2 weeks. Please, if your new to the game don't make a similar mistake.
If you are setting stop losses, make them loose.. not 5% below the current price or 10%. The MMs can see all stop losses and will go down to scoop them up, even if its for a 5 minute period. Then you come home after work and look at your portfolio and see DBCC up 8% for the day, but then you notice your shares are gone. So be careful of that.
Also, you will see a lot of shorters show up both here and especially on the Yahoo DBCC board. Ignore them.. in fact ignore the stock for the next 4 trading days. Come back next Thursday night and make your decisions then on what you want to do with the stock. I say that because it will be very volatile in between then and now. If you ever get nervous because your sitting on a gain, simply sell as much stock as necessary to regain what you invested and let the rest "ride" free.. that way you never will lose more than you invested in the 1st place.. and the rest is free money.
My initial thinking when I bought DBCC is it would be around $25 before the IPO.. now I've upped that to the lower $30s range. That is just my opinion and I could be wrong. The power of the internet is amazing when word of mouth (or message board) starts going. You can see that when a crap stock like AAGP ($1) goes to $23 based on the fact it is going to start a web site.
Obviously I can't guarantee it will go up to so and so level, or even that it will go up. Just like anyone else, Im going on similar stories (i.e. MALL/UBID) and Internet stock performance as a whole.
So if your new to the stock, just expect a lot of volatility and craziness and don't let what people say here or on other boards scare you... they have an agenda to lower the price because they are short and/or they want to buy the stock themselves at a lower price. The real fun won't start until the week of the 11th.
Once again the IPO is not January 11th, its sometime that WEEK. Word on the boards is it is the 14th but I haven't confirmed it, so I can't say that is true.
So just let this week fly by and like I said take partial profits if your nervous but don't sell out until the following week.
Good luck and yes I have an agenda too, i want it to go up :)
Mark |
