Howie, if you insist on shorting, there is always ample time to do it after a stock establishes a down trend, shorting into new high ground, while possibly rational on valuation basis, is suicidal due to market's dynamic. A stock in new high grounds has no longs as losers, thus no selling urgency. Luckily for the few shorts in this stock, HAUP never had a short position before yesterday's explosion, thus I doubt there is big urgency on the part of the shorts to cover either. I for one, If I still held the stock, would be a seller (and I was a seller in IOMEGA at $23 just to see it roar to $65, so I would probably be wrong) mostly because I have noticed that prices peak with volume, and with the volume Friday being 8 times the float and about 4 times the total number of outstanding shares, I just cannot see higher volume peaks. Mind you, just because I am blind, it does not mean that the rest of the market is, and in the environment where I-net labels are easily attached and detached to and from a variety of stocks, who knows what "irrational exuberance" will do.
All that aside, HAUP is growing consistently at above 30%/year for some three years now, and that growth does not seems to be abating. Even if they sell those boards for only $75 bucks, they still have a huge market to penetrate and it would not be impossible to see them selling 2 MM such boards annually (less than 2% of all new PC's sold, and of course a much lower percentage of the PC base out there), making their sales in few years in excess of $150 MM, since they have only 4.3 MM shares outstanding, I can see a lot of people making a "case" for even higher prices. In any event, until and if it is going back into the teens, I'll let someone else play that game (VBG).
Zeev |
