Monday, January 10, 2005
TZOO, why won't you die?
Up $2000 today, no thanks to TZOO. Like a monster in a cheesy Hollywood horror movie, just when you think it's dead, Travelzoo rises up. What's sustaining this sack of dung at $95? Clearly, it's not valuation. Even notoriously optimistic Wall Street analysts are all giving it a big fat sell rating. No wonder, given the ridiculous valuation of TZOO's customer base. The only thing sustaining the current price it is the expectation of another short squeeze, made possible by moronic new regulations passed by the SEC to curb naked shorting. Well, I have news for TZOO longs: sooner or later the day or reckoning will come, and your stock is heading back to $25. I don't know when, but do know it will happen. In the end, fundmentals triumph. You will lose and I will gain.. at your expense.
TZOO is down $5.40 as I write this.. and is now under the 50-day SMA, the first time that has happened since this insane run began. I think this marks the beginning of the end.Post a Comment