AOL will shoot up before market close. The market is hot today and everyone wants to buy tech stocks. But Microsoft and Dell are too high. But they will see AOL at 119 and see it is cheap and snap it up. You could buy MSFT in January for 119 and now it is 160+. AOL is just like MSFT. I buy 100 more shares today because it is true.
i like to balance my portfolio with a few puts and short positions because i see a pattern of strong buying in between earning report seasons followed by strong selling when earning season early warnings start coming out.i watched coke go to 70 about 9 months ago everyone kept saying it was over priced then an analyst came on cnbc and said buy the stock and wait for the fundementals to catch up with the stock price! HUH! i always thought investing should be waiting for the stock price to catch up with the fundementals! so i shorted it and made money. now everyone is saying aol is over priced but this is a different story. this is a rigged stock just like prst was and you know that was a stock that belonged at 20 but went to 200 so because of that lesson (watchin prst not shorting) i bought puts on aol everyone knows its not worth 119 but it's to dangerous to short if everyone knew this it never would have made it to this price when the shorts stop running into this trap the jig will be up and the stock will drop.
You are crazy if you think AOL is cheap. Using any number of conventional analysis, this stock is at least 2x overvalued more like 3x overvalued.
How can people ignore the book value of a little over 2 and a return on equity of -97%. If I owned a company with a -97% return on equity, I would ring management's necks. This company is sooooooooooo poorly run. Well run companies like Intel have return on equity near 40%. I would not short AOl, because the people who buy it are not looking at fundamentals on how to properly evaluate a stock. I may buy options, but overtime, the stock price mirrors the actual value of the company. When that happens, this baby will see toilet city.