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Internet stocks - where are they headed ?

Interest in Internet/web companies is back with so much activity in Internet stocks. Here are some highlights:

- Yahoo and Microsoft talking again bringing Yahoo stock to almost same level as before the previous talks failed. Not bad for someone like Carl Icahn who already made over $120 M in just two week
- Amazon being added to Goldman Sachs focus list. I am strong believer in Amazon model and loyal customer. No wonder it is on my Model Portfolio 2008
- Google jumping by 20% in one day ($90) - biggest ever gain since it went public after Q1CY08 results
- CBS buying CNET for $1.8 B
- Chinese Internet companies (BIDU, SINA, SOHU) all near their highs

Looks like Internet stocks are back in favor. So is all the upside already priced in or are there any more gains to be made. My prediction is that there are still about 20% gains to be made in AMZN, BIDU and even Google. However since this market is so volatile and fortunes for these companies change so fast (remember Ebay, Yahoo who seem to be stuck for last few years), I would recommend buying INPIX ($93) if you want exposure to this sector. This could easily reach $110 in next 12 months giving 20% return

On another topic, watch out for some of the Chinese solar stocks like CSUN and SOLF - these stocks could move in big way either way depending on their earnings and forecasts.

/Shyam

Comments

Anonymous said…
hey shy

whats up...again congrats on the MBA...what field do you plan on going into???

Also are you risk arbing the CBS CNET deal??? I had finals last week and next week...Im loading up on the summer school courses both terms baby

Anyway friday was a bit crazy huh...you know my stance uber bear jerkwad that I am... well i freed up a bunch of stuff on thurday thinking fri would be flat perhaps light volume pump job... never expected to see the $vix get an almost 20 handle and $bix approach fed save levels (225 on soc gen and BSC days)

wierd stuff... have a good weekend and again congrats on the MBA
Shyam said…
Larry,

Good to hear from you and thanks for congratulations. I did finish my MBA and is planning to continue in my current job. Looks like you are planning to have busy summer. I would be traveling to India.

Did you check my post on solar stocks and recommendation on ESLR. For a change, my reco jumped by 20% after I recommended. I am planning to build some positions in solar stocks - did you make any analysis on those ? Any opinions ?
Anonymous said…
congrats on the call

I have read every 10q from FSLR...that is the only one I am familiar with...I like them and as far as I understand they are the low cost provider but thin film is not as "space effecient" as the poly silicone stuff

I really dont know too much about them... It is the P/E levels that scare me as well as some of the rumors about SOLF earnings and stuff... I can tell you though that FSLR is legit but I have no idea where the price per share goes if the market gets whacked again...Look at their 1yr charts and you can see they are all over the place...As far as long term investments they are likley wise choices as energy concerns will be an issue going forward

If I were going to get long solar I would want to do research on who is the closest to achieving "grid parity" ie cost of solar power is same or less then from the grid...also you can use a covered call strategy to perhaps reduce some of the volitility

have a good time in India...have some lamb vindaloo and chicken tikka for me

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