I think that in times like these it is important to remember that there has been essentially no negative news regarding GNET. It is still undervalued compared to it's peers. It has been acquiring other companies such as IQC charts, an auction site (Haggle) etc. at reasonable values. The influx of cash as well as the involvement of Paul Allen has given GNET a great balance sheet, especially when compared to other 'nuts that continue to lose money. Allen's investments in cable(broadband) and now Datek becomes more valuable for GNET.
The momentum players are gone for now, but no doubt will return. As SusanG pointed out several weeks ago, the charts of AOL, YHOO and the rest are similar. We, however, have the advantage as an undervalued, "less mature" company. There is much more room for growth, and with the continued execution of managements plan, there is tremendous upside. I'm not going to "lose site of the forest for the trees." I continue to short term trade other holdings in my portfolio, but this one is staying put.
The internet stocks as a whole have tremendous volatility. That is what carried us to $199 as well as brought us back down with the entire sector. GNET, imho, offers significant value in a market sector filled with more hope than reality.
HeatherN |
