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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Steve168 who wrote (20266)	12/16/2004 3:07:56 PM
From: Bob Rudd	Respond to of 78495

Steve168: <<good to see you covered RIMM with a profit. It is too risky to short such momentum stocks with good growth>>Agreed..had the patent issue shown to be more a show stopper and chart picture reflected that, I'd have stayed, but both business and stock momenturm are pretty solid. <<I think TZOO is far more overvalued than RIMM, I may enter a small short position in the next 30 days. Ameritrade did not have shares for me to borrow last week>>Yes, Way overvalued. As I write this I'm listening to CC on CD's acquisition of British Travel site Gullivers at multiples below the growth rate. They also payed below growth multiple for Orbitz. In both cases you have market leading properties and a control premium was involved. What appears to be driving TZOO, and accounting for the tough borrow, is the tiny float. This makes shorting TZOO very risky since hedgies will often target such situations for squeezes...especially at the end of the year when running up the price can run up the score for bonus purposes. At some point the insiders will start dumping the 87% they own...this will be the time to short, IMO.