Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts

Thursday, October 14, 2010

Yahoo deal being orchestrated?

Yahoo shares are higher today after some fluff was bandied around about AOL and private equity firms buying out Yahoo. Whenever I hear rumors like this during the week of options expiry, I wonder who's benefiting from the juice that Yahoo shares are enjoying this week. Is it a PE firm who bought calls on Tuesday? Is it a touter who's trying to get out of a losing position in YHOO with as little pain as possible? WHO?

My guess would be multiple culprits who have a vested interest in seeing YHOO shares going higher this week. Once the juice is off, the shares will settle down again near 52-week lows. That's the way Wall Street works folks. Selling into rumor-driven strength (and buying on rumor-induced weakness) are old tricks that have been used since the days when Larry Livermore was making his bones as the Boy Plunger.

Tuesday, October 12, 2010

EA shares drop 5.95% on Medal of Honor Reviews

   I completed my buying of Electronic Arts shares today on the drop this afternoon. I am now sitting on 4,000 shares that I've purchased in increments over the course of the past 8 months. When I saw the shares under pressure today from what I consider BS news about "mediocre" early reviews, I had to take the opportunity and buy. EA could continue to drop in the next few days but I'm comfortable in the position and I may add 1,000 more shares if I can get them at $16.

   The next position I'm considering is AMZN. I already own shares in my core brokerage account but I'm thinking of buying trading shares because it's breaking out nicely. I tend to buy a stock when it goes higher and then add to the position as the shares continue higher. My target on AMZN is $200 for the first level but I could see it running all the way up to $300. Amazon's market cap stands at $70 billion but I think it's a $140 billion dollar company in the next 5 years. What happens after it hits $300? It'll probably crash all the way down to the single digits like it did during the 2000-2001 dot-com crash. I never fall in love with a stock but I see the potential appreciation in EA and AMZN's share price over the next 60 months.