Tony, this is a terrible stock to trade unless you have a good crystal ball and a lot of luck. It takes one step forward and two steps back. them three forward and one back. So if you buy in at this level, or any level it has been at for the last few months, you can expect to see some mixed green and red on your portfolio. And if the market goes way down, expect to see a lot of red, because it is an internet stock.
However, if you understand its volatility, believe in the future of broadband, and can hold for the long term, the last thing I would worry about is its price. Just buy and forget it, take it off your portfolio and look at it in a year or two.
The only thing that will undermine ATHM is if its current virtual monopoly on cable broadband is broken, either by the government or by competitors. If it keeps its monopoly, it will indeed be the AOL of the next decade. In the meantime, AOL will keep growing, IMO, so I own both. |
