Wednesday, November 21, 2012

Is your tech stock on "life support"?

Watch for heavy tax loss selling on some past bubble stories. Its easy to fall in love but hard to break up once the romance is over. Take emotion out of the trade and focus on making money. Don't get caught in the hype.

No matter how well you dress up a pig its still going to stink. It looks like the more they try to dress it up the more the pig starts to smell.  The pumpers are at odds with each other these days. They may be left holding the bag on some of their latest exploits. As their stocks sink they have their pre-planned responses in place. "its not a reverse split its a reorganization to get stronger". Or who can forget this one "its not bankruptcy its bankruptcy protection". Come on the fat lady may not be singing yet but she sure is warming up her vocal cords behind the curtain.

A very well known and touted CEO once told me, "you know its about to run off the rails when you start believing your own lies". The truth may be very simple. Maybe it was a bubble. Maybe Facebook launched too late and the fall-out is now kicking in on all the junior techs.

This is a "show me" market and even some of my favorites have to live up to a certain standard or harsh choices have to be made. The markets are down in every sector but for some even a strong rebound may still leave them behind because their story just failed to launch.

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