You were correct. This was pointed out to me in an earlier post as well. And I did read the CBS Marketwatch story, which is an excellent explanation.
Still, I cannot agree with the interpretations. This is like the scientists who argue that, according to the laws of physics, the bumblebee can't fly and yet he does. So too with amzn, yhoo, aol, eBay, etc. These things can't be explained by the usual paradigms, and yet they too exist. While some say that they must crash someday, because their valuations cannot be rationalized, I say that the problem is in the rationale, not the stocks.
Bottom line: the ride is happening whether it makes sense using the normal explanations or not. Is it better to deny yhoo's valuation or have a piece of it? A guess this comes is best explained as the difference between lighting a candle or cursing the darkness.
uBid has a definite base @120, whether or not it can be explained using non-internet paradigms. And it will rise from that base, again whether or not it can be rationalized. As will a number of other very real companies (by this, I exclude the hyped vapor-net companies). And my choice is to benefit from this unexplained phenomenon rather than to curse it for my failure to have a facile explanation. And if its volatile enough, everyone will make money. But my side has always been long rather than short, as I do not prefer to make money at the suffering of others. Just my choice, as I don't begrudge anyone else theirs.
SHG |
