Trade Alert: Time to trade one of those Web 2.0 stocks
Good morning and welcome back to the playground, where the monkey bars never close.
In the early going, stocks are down slightly. Take a look at this 5-day chart of the Nasdaq. Lots of volatility but we’re back where we started after all that noise.
http://finance.yahoo.com/q/bc?s=%5EIXIC+Basic+Chart&t=5d
Also, take a look at this article bulling on Fusion-IO. It’s well-written and it presents the concept of FIO as a takeover target well.
Fusion-io Offers Bidders Above Average Growth
Other than that, I am going to, as I’d hinted at yesterday, buy a little Zinga for a trade here. The stock has been crushed since it came public and despite a brief run up into the initial buzz around Facebook’s IPO, it’s been a total loser and has wiped out a lot of weak tech investors. I think the stock has stabilized here and the chart looks like it could turn back up and head into the double digits. I plan on selling Zynga by the time Facebook comes public. But at $8 and change a share, down from $15 where it was after it came public a few months ago, I think the valuation’s even gotten to be a bit more reasonable.I’m just buying a little bit of ZNGA common, and I’m considering it in this light — I’m essentially buying a $8 call option with no expiration date and a strike price of $0.
