IACI has received as much good publicity as it has bad..maybe more good I would think. Every morning for last couple of weeks I pull up my screen ready to dump this and then something just keeps my fingers off those keys. I can't explain it. Where I'm drawing my confidence in this stock from I really don't know. But I am beginning to think that confidence is slowly becoming stupidity. Has anyone else had this same experience with another stock and came out on top in the end. Please..."misery loves company" and insight.
Because I'll close my position at 25. At that point most longs here will be wiped out. And I'll be closing a short position with a lot of profit. It's inevitable, since it has already hapenned and it will happen again and again, forever.
Harvard, Funny but I went through a similar experience shorting expe from march until now. I did not anticipate the huge moves that the acquisitions inspired nor the " legs " that the run up enjoyed. Throughout my investment history I have always employed stop loss levels that have prevented me from REALLY large losses in certain investments. I ignored these during the run up. As a result, I was down ALOT of money on this trade. I [fortunately] have the resources to wait out and/or average out a mistake of this nature. However, that being said, the trend has changed, your instincs are screaming at you to sell, so sell. The other option of course, is to forget about it and hold it long term. I never thought that it would increase as much or as fast as others who post on this board, but believe LONG term [3-5 years] it will be a winner. Good luck to you. Hope you dont have grocery money in this! lol
Why? 1. IACI is in internet sector. On its way to becoming the most overvalued sector, IACI also hooked a ride up to insane overvaluation. GAAP earnings were $0.02 last Q and probably negative this Q. 2. Market seems to be correcting now and internet stocks are least favored group as momentum players have jumped off after milking it all year. 3. Market participants are realizing that this particular stock was one of the most overhyped and overrated stocks ever. Eyepopping revenues and cash flow, but in the end - negative residual free cash flow and no profit. Intrinsic value calculated at $7.28/share by ValuePro.
IACI opened up a gap at around $30/share on its flight upward earlier this year. 93% of gaps are filled. It may happen here this week on its death spiral downward if market remains weak. Market may just be starting to correct. This stock has everything against it now. It is placed in what is now the weakest sector of a weak market. On the way up, it was just the reverse. And IACI is not producing any GAAP earnings and has no prospects of doing so in the next year. Market is wising up that so called "adjusted" earnings are engineered for prospective bag holders. Take a look at EBAY, AMZN, and YHOO today. Death spiral is in the early stages yet.