Open Table (OPEN) makes online restaurant reservations. This Open Table has long been on our watch list to short, however it never meets all of our screens to initiate a position.
Zagat is the most respected restaurant review service out there. Recently, Zagat agreed to provide its content to a competitor of OPEN, owned by IAC/Interactive Corp (IACI). Now the news is that Google (GOOG) is buying Zagat.
OPEN is down $4.00 on the news.
Anyone attempting to short OPEN should be cognizant of a potential short squeeze in OPEN.
For us to recommend, a stock must pass at least four of the six screens. We prefer a stock to meet all six screens. Our rigorous criteria has led to enviable performance over a long period of time. We periodically provide information on trades that we do not recommend, but our subscribers may be able to take advantage.
