Y-fall, i have steered clear of cnet ever since the earnings report came out, which has been invariably a great time to sell in the past. this is not to say that i doubt cnet as such, it is a great company and it delivers.fundamentally i expect good news to hit the market in the future, such as a spin-off of 'snap.com', maybe even a take-over of cnet by one of the portals, yhoo being my suspect of choice. that said, i am cautious on the near term outlook for the stock. the post-earnings gap on the chart has been closed, but yesterday the price poked beneath the short term moving averages (10 DMA&20 DMA) which have also crossed over bearishly.also the selling has been rather determined late in yesterday's session, all of which leads me to expect some more short term weakness.let me add here that one never knows for sure with internet stocks, sometimes technical signals can not be relied upon, as it is such an emotion-driven environment. so i guess that the important thing here is your time horizon. if you can stomach the volatility and have left some of your powder dry, you might consider adding to your position if and when they sell it off some more. never ever buy this,or any other netstock,on margin. IMHO no near term miracles are likely, a period of consolidation would actually be healthy here.
regards,
hb |
