MAMA – Accumulate Short Position

By: ispeculatornew
Date posted: 01.05.2007 (12:00 am) | Write a Comment  (0 Comments)

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MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $5.60)

If you followed my advice and shorted MAMA at $4.89 you might be a little worried that it has now risen to $5.60. However, shorting a stock requires the same amount of patience as buying a stock.

There is still a major disconnect between the fundamentals of MAMA, which are terrible, and the recent runup in its share price. The runup has been based on hype and nothing else. It may take a while for the share price to reflect this, but eventually it will.

I am reaffirming my recommendation to short MAMA and I am going to average the price I originally recommended shorting MAMA with today’s price.

Disclosure: I am not shorting shares of MAMA.

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