Greg: I didn't know that my selling ATHM today would cause so much controversy on the thread. I made a profit - I'm happy. I don't know if I sold at the bottom and will kick myself later. I like the company - I invested a ton of money into it and held it for many months. I'm not suggesting to anyone on this thread to sell their ATHM stock!!!! But I will not sit back and go into a losing situation with this or any stock when I nor anyone else knows where this market is headed. I can always buy it back. I got plenty of cash as I cashed out of some other internet stocks today. Now I could be way wrong in here folks. But I smell a rat regarding ATHM at this juncture, right now. I hope I'm wrong about that because I do not wish any harm to any longs. As a matter of fact, I'm still sitting in CSCO, SUNW, RMBS, and a few other tech stocks which could get slammed.
But the split is not a positive event in the short run. That will drive the price down further, IMO. Geez - 360+ million shares already, only after 1 split upcoming. I don't know but many investors sell a portion of their split allotment and park it somewhere else. The merger with XCIT has to be straining and the multi-billion dollar cost to buy XCIT definitely added dilution. I'm not so convinced the cost of the merger is being so well received by the Street in hindsight. Maybe I'm wrong about that. The charts look like crap, maybe there's a bottom in here, right now, but I see a breakout to the downside well below its 200 DMA. Time will tell.
Lastly, I see a lot of wagons circling ATHM regarding alternative broadband technologies, STBs, television/internet convergence, etc. No one can predict how many customers ATHM will have in the future and whether technical competition will drive costs down so much in the future that these kinds of companies are considered quasi-utility companies - companies whose growth rates slow in a few years and making money becomes a chore. No one knows and I don't make any claims to know where this stock is headed short-term or long-term. But right now, at this very moment in the history of the stock market, I smell a rat. Good luck to you and the rest of the thread. I wish all of you profitable days, I really do. I'm a long time bull just getting real cautious - can anyone blame me?
jmanvegas |
