IntraLinks (IL) has lost about one-third of its value today.
The stock has now come back to the same level where it was when Jim Cramer started recommending IntraLinks. Several major brokers have come out in the defense of IntraLinks and proclaimed the weakness is a buying opportunity.
We disagree with Jim Cramer and all the Wall Street brokers who are recommending to buy this stock.
According to ZYX Change Method Quantitative Screen, the fair value of IntraLinks is $19.00.
What to do now:
Those not holding the stock may not consider buying it at this point. In our opinion it makes no sense to buy a stock that is trading 5% above its fair value. Subscribers to ZYX Buy Change Alert will be informed in real-time when and if the stock becomes cheap enough to warrent a buy signal.
Those holding the stock may consider scaling out on bounces. For scaling out, please see ZYX Change Method Trade Management Guidelines.
