EBAY
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ebay is a tough short because everyone knows its overvalued. too crowded of a short. shorting stocks on valuation alone isnt very wise.it will sell off someday but the timing is the tough part. ebay took out a lot of professional shorts in the internet boom.
I shorted already at about $ 84. Ready to short more, but this will be a difficult short play, you need big balls and enough money to end it profitable.
Maybe we will see a stock split, like in the old days, which is the nigthmare of unexperienced shorties.
Good luck to all.
Maybe we will see a stock split, like in the old days, which is the nigthmare of unexperienced shorties.
Good luck to all.
I think that's the ticket... collar it. I do that a lot if I think it's warranted by downside target.
Not in EBAY yet.... but watching for sadaam to eat a bullet first (and maybe they auction it off on their site). Then after earnings... maybe a blowoff and reversal for a short entry.
:eek:
Ice
What about a pair trade?
To elaborate a little further, stocks that split (if they're strong) will tend to move back up quickly toward their pre split price, as more investors see the post split price as more of a bargain. See EXPE as a perfect example, which pre split had trouble getting above the 85 level, but after the split had no problem cracking 50 (i.e. 100 pre split). Also, when a split is announced, strong stocks tend to run up into the split. This can make it scarier for shorts. If in fact EBAY announced a split, I would find it much less attractive as a short because of this psychological phenomenon.
You don' know, so I will tell you. Nothing happens. When the split is done you are short your inventory x split ratio.
But every time a split is announced, people get nervous, they are short and are loosing money, some even don't know what happens with their short inventory, so they finally sell in panic. This used to be an old scheme during the hype to push stocks into the stratosphere for a limited time.
Good night.
But every time a split is announced, people get nervous, they are short and are loosing money, some even don't know what happens with their short inventory, so they finally sell in panic. This used to be an old scheme during the hype to push stocks into the stratosphere for a limited time.
Good night.