LinkedIn (LNKD) frenzy continues.
Fundamentals do not justify buying LinkedIn at this level. LinkedIn is no Google (GOOG).
Options will start trading Thursday and stock should become available for shorting after that. An analysis of the historical data of similar situations shows that shorting this stock in the near term will be a disaster.
There are low risk ways to make money from LinkedIn. Here are the excerpts from my article on Seeking Alpha:
LinkedIn: Overvalued, But a Dangerous Short
LinkedIn (LNKD) went public Thursday, setting a frenzy on Wall Street. It was not that long ago that LinkedIn shares were expected to be priced in the mid 30’s. The stock went public at $45.00, opened at $83.00, and intraday traded over $100.00. At the close, the stock settled at $94.25, up 109% for the day.
A company that had a profit of $15.4 million dollars last year is now worth $8.9 billion.
There is no doubt that the company is growing fast, as shown in the chart.
click to enlarge
Some investors looked at $243 million in revenues last year and called it a big bubble.
A lot has been written about the fundamentals and technicals of LinkedIn. My long term readers know that I do not write ‘˜me too’ articles that simply regurgitate the information available elsewhere.
The focus of this article is to make money on LinkedIn the low risk way.
Let us first understand the fundamentals. LinkedIn has over 100 million members. At the current price, the stock market is assigning a value of……….Read More.
