Short Selling Amazon

Q: I spoke with my broker awhile ago about this. He said he just had a client cover his position at a $150 a share. In other words he sold it originally at $135 and bought it at $285. Personally, I don't think I could sleep at night. I bought it and am thinking of making a quick 30% and then bailing. You really have to have guts to short. If you plan on doing this I would wait until there is a substantial downswing in the stock. I figure that it just split 3 for 1 so there will be a upward trend in the short run. It is hard to predict on any stock. Anyways, I like others have been watching and I just bought in yesterday.

A: You're insane, right? Everyone knows AMAZON is a piece of shit and will never
turn a profit in the low margin business it's in, but it's 'The People's stock'.
You know, the dumb fuck delivering your mail, the plumber, etc. Try
arguing fundamentals with them when all they see is Amazon doubling and
tripling in a month. P/E? Growth rate?

All they see are
double-digit gains. It's guys like you that contribute to the sharp rises,
because when Amazon runs up 10 or 20 points in hours, you'll be begging to buy
back the shares at these levels just to cover your short. And this will make
it even more tempting as an investment to your doorman. A few of these short
trades, and you'll be opening the apartment building doors for him!

Actually, wait for the market to turn. My observations of following these net
stocks is that they move with the markets - but their moves are magnified.
When the market rallies, they rally the most. When the market sells off, they
are the first and hardest hit victims. Wait until after 1st qtr earnings when
reality sets in that corporate growth is slowing and the market corrects.


I hope anyone who had crazy thoughts of shorting Amazon followed today's
action. It was up over 37 today. Since this is post split (3:1), that makes
it a 111 point move (in first 2 hrs of trading today!). I don't know where it
closed - I'm trying not to look at these internets because it's turning my
stomache. Still think that CIBC analyst should be fired for throwing fuel into
the internet fire by saying AMZN is worth $400. To show you the craziness, it
passed $500 today. And the $400 price was a 12-MONTH PRICE TARGET when AMZN
was trading at $230. I'm really sick of the internet. If only my heart was
strong enough to withstand the volatility....

My point was that I don't have the guts to play with the internet. It
truly is gambling. Did you see Broadcast.com on Friday? Up 96 1/2! Then
dropped to 55. Same with alot of the internets. YHOO was up 33, then 20 or
so, then closed back at 30. You do not need to know ANY FUNDAMENTAL ANALYSIS
to play these net stocks, which is why it is so appealing to trade for your
average housewife. They are going to have to create a class to teach
intra-day technical analysis to trade these net stocks.