Thursday, October 12, 2006

 

Sector Spotlight: Networkers

The market is unstoppable. For every seller, there seems to be 10 guys willing to buy. However, don't get too giddy over the recent bullrun. The momentum is what is keeping this upward movement going. And, momentum, opposed to a fundamental rally, is what can hurt the small investor most. It swings both ways.

In my opinion, the place to be , if you like tech, is the Networkers. Due to red hot demand for video (YouTube) and music online, companies that provide bandwidth services to popular websites are enjoying terrific stock runs. Unfortunately, every once in awhile, you get fucked like I did-- selling VSTH, on the news of losing their biggest customer, and then it gets fucking bought out for a 27% premium 2 days later. Again, I say to the rumor millers at thestreet.com (Stocks under $10 Guys): Fuck You and fuck you.

Within the Networkers, my favorites are: EQIX, GLBC, AKAM, FNSR and SVVS.

Regarding FDRY (recent position of mine): I changed my mind and sold out the position, due to valuation concerns.

Finally, I do believe the market can go higher. However, I am bearish on the Semiconductor sector. Therefore, I have started to bulk up on my ATHR short. Although, they may have a good qt., any company that has UTSI as a 10%+ customer is worth betting against.

The following Networker stocks have mojo:

VSTH +22.6%
ONT +12.7%
AFOP +7.8%
DIVX +6.4%
VOCL +7.2%
CIEND +3.8%
EQIX +3.1%

Comments:
How 'bout long Oct puts on CY for short term trade: runup exhaustion, buyout news vacuum, fear of delay/confusion due to antitrust? Or just short for less risk.
 
Do you think this bull run is all about the election? The market going higher certainly helps the incumbents (Republicans) and the more favorable tax rates?
 
I definitely think the run up is election related. I am wondering why it is so strong, considering the Dems may repeal many tax breaks.

As for CY: I do not follow it closely.
I can't give an opinion.

Oil looks good here.
 
With all due respect the guys at the under ten newsletter were right on with VSTH. Anyways, you wouldn't have made much money if you held on, looks like they sold it about the same price as you must have paid for it
 
I know- I know.

But, if it wasn't for them rumor milling, I wouldn't have cut my losses at the time I did.

Undoubtedly, I would have held the position-- if it weren't for that 2 point decline.

Fuckers
 
Have you seen everybodies favorite manipulated stock today? It's a stampede. Looks like that short would have been good after all.

http://finance.yahoo.com/q?s=mncs.ob
 
I know. What a scam.
 
I read the article you wrote, what is it about EQIX that gives you a hard on, and when do you see it appreicating, near-short or inter-long term?
 
EQIX big tits give me a "hard on."
 
Nothing better than a nice Rack
 
There must be alot of people today that are very fond of those tits!
 
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