An old college friend is an insider. The guy made a lot of money with City Search and now he's making more money. After it IPO'd I told him congrats but I am more a sub-20 p/e kind of investor. Thta's why he's rich and I am, uh, comfortable. Let's just say not rich.
I used Open table for a few years before the IPO. Definitely a good service. I had no idea my friend was involved at all.
It's funny, i met my wife on match.com and another old college friend was president of the company at the time. of which I was completely unaware until later (I only found out when Barry Diller canned him).
That's true for ANY stock. Geez! Every good stock like OPEN has it's run up, followed by a (sometimes fast) decline. For good stocks, that hill can be very long and very high. Then, some stocks turn cyclical, some companies get acquired, and some never recover. (IMO: CROX is not a "good" stock. I agree with you that it was just a fad.) The question is, how long will that run-up of a good stock last? Investors who pick the good companies (that hit the right very long-term growth market at the right time) can have a very profitable up-to-7-year run to the upside. Sure, there are dips of 5-10% along the way but with a good stock, like OPEN is in my opinion, you'll significantly reduce your long-term profits by miss-playing just a couple of those dips. Like I said in an earlier post - I've seen this type of pattern with this type of stock before. Shorts will constantly get creamed. I'm not syaing that OPEN will have a 7-year run, but I think it'll be much longer than you might think. You'd be better off enjoying the long ride up, and just taking a little money off the table now-and-then, instead of trying to time the demise of a stock like this. The performance of OPEN over the past few weeks of market turmoil reveals just a glimpse of what I'm talking about. I'm not saying to never take some profits but, with a stock like this, it's so much fun to sit back and enjoy the sport of watching shorts get creamed.
I'm hearing all over that the 20-something youngsters think Open Table is "the bomb!" (Apparently that means "totally awesome, dude!") Of all those apps & websites that direct you to food, how many are fully integrated enough to easily let you make your reservations? Open Table!
With my smartphone I'm watching more and more restaurants jump on board both locally and everywhere I travel. Heck, my old lady (totally computer illiterate) recently turned me onto it. It's all about growth, man, and the word seems to be leaking out about Open Table, nice and slow-like. "Overpriced?" With a stock like this, that's just another way of saying, "Shorties are gonna get squashed constantly." Hee, hee, hee....