MAMA – Recommendation to Cover

By: ispeculatornew
Date posted: 06.14.2007 (12:00 am) | Write a Comment  (0 Comments)

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MAMA – Mamma.com Inc. (Nasdaq) (Closing Price – $4.22)

In my last post I stated that I thought Mamma.com would fall through its support level. However, this hasn’t happened so I am going to recommend to cover your short position in Mamma.com if you have not already done so.

Mamma.com may still fall but I think there are better places to invest your money. Also, the stock price of Mamma.com tends to jump up more than it should when the company issues a press release. Therefore, I think it would be wise to get out before some trivial announcement sends the price back up.

I want to point out one more observation that I have noticed about Mamma.com. I’ve never seen a stock have so many surges in price and volume when absolutely no news was announced. I don’t know what hedge fund or trader is employing this strategy but I doubt they are making any money doing it.

I am going to end my coverage of Mamma.com and I am going to book a gain at today’s closing price.

Disclosure: I am not shorting shares of MAMA.

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