Sharon, after reviewing the technicals and the market conditions and other dynamics, I harbor an ominous feeling that DBCC is going back to the teens next week.
1. 8 out 10 MKTW holders I know either already have shorted or will be shorting DBCC to hedge their positions in the former.
2. Massive insider's selling, diluting an already large float (at least by internet stocks standard).
3. I heard from numerous sources that major brokerage firms will be removing margin privilege on many internet stocks. As a matter of fact, Waterhouse, though not really a major firm, has already banned online trading on DBCC, CMGI, AMZN and a few others.
4. Technically there is strong support at 20, the former double top resistance and also an area of congestion. If the market takes out 20 with convincing volumes, DBCC won't find the next support until 16 - 16 1/4, the intraday low set on Thursday the 7th, if my memory serves me correctly.
On the positive side, there is a rumor that DBCC may yet launch an IPO of another financial site of which they assume a sizable ownership. But judging from the way insiders are selling, I am not too certain about its validity.
Just be careful.
Disclaimer: I still am holding a sizable short position, so my opinions, as much as I try to balance it, can very well be colored by the position I already hold. |
