Okay, folks. We didn't trade to $175 as expected thanks to the market pull back in the last hour.
Think what would happen if the market did turn around and gained 90 pts instead? We might just
Hit that $175! But, don't be disappointed, AMZN and AOL were actually doing quite well in the last minutes, both recovered for about 2 pts, and retained double digits gain in such a general market
down day.
What's next from here?
My thoughts are as follows, 1) Bezos will not let the hot air skip out of the AMZN that quickly. I
think the way we've seen so far how the company is releasing the positive news suggests that
Bezos has made a concrete plan targeting AMZN's price. The goal is to raise the price above
$234(?) so that to force all the bondholders to convert their bonds into stocks. We've seen the
first sets of good news. I think there are tons to come, with Q1 release being the climax. For
example, we might see news tomorrow saying that how successful the first day's auction action was. 2) I also think that analysts are jumping into crowd in order to show that they are not dumber than the average investors like you and me. We can expect higher 12-month price targets announced from various analysts one after another, siting the tremendous upside potential in Q1. The one I just posted in previous message is a good example. The analyst predicted that AMZN will go 800% higher in next few years. 3) I think it will be another strong up day for AMZN and AOL tomorrow even if there is no significant new news coming out. The reason is the window dressing effect. It's the last day of Q1, and fund managers want to show their clients that they are so smart and have got the best I-net stocks in their portfolios. 4) I think Bezos will announce a 2-for-1 or even 3-for-1 split as soon as AMZN hit $200 again in order to keep the gains and then some. After all we've seen AOL did it again in just 3 months.
With DOW hit 10,000 yesterday, it was expected we would get a sizable pullback today. Now that
the "correction" did happen, I think there is a good chance that the general market will resume
upward trend tomorrow. Obviously if this happens, AMZN will be helped dearly. How high can it
go? How about starting at $170 and finishing above $180 by day's end?
Now you have it. I have been telling you all along that once AMZN broke $140 trading range and
past $150, we would see it testing $200 again. Now the time does come, I hope everyone grabs the
opportunity. Don't fight the tape, you're not gonna win. In fact, you're gonna be buried by
overwhelming forces.
Good luck everyone!
MB
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