Now that all Net leaders have reported. It turned out that all of them, AOL, AMZN, EBAY, YHOO have reported results better than the Street's estimates. I think the drop we saw starting yesterday's afternoon until the end of today's session, was tied to 1) the fear from AOL, AMZN's not too good results, and 2) the possible slow down after the earning season. Because of these concerns, the Net group as a whole has dropped about 10% in the past couple days, which has no merrit IMO. Now that we got excellent results from both AOL and AMZN, the fears are completely unfound. The Street will re-assess the situation, and draw a conclusion that the Net leaders are continuing their march forward, while some of the smaller ones are dropping out.
So, my assessment of tomorrow is that, we might see some weakness at the very beginning. But it should not last more than 30 minutes. After that we should see a steady upward move, especially on the Net leaders like AOL, AMZN. If we somehow get new positive news tomorrow morning, such as splits, etc. then we could see a sizable jump from all these Net leaders. After all, the uncertainties are completely gone. We now know that all the Net leaders are not only stay alive, but growing faster and faster.
My suggestions is, DON'T SELL! I will tell you that I'm holding 1600sh of AMZN, 1367sh of AOL. I will not sell even a single share of each tomorrow. In fact, I will hold them through the rest of next month, when a whole slew of splits will be in effect, which could very well rejuvenate the Net group again.
Good luck!
MB |
