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Example 1. YHOO.

本文发表在 rolia.net 枫下论坛YHOO had been a low performer in thepast few years under the presure of competetion from GOOGLE. According to Jim Cramer, Yhoo had ever missed the earning expectation for 13 times consecutively!

However, YAHOO has its value. Since last year, it is constantly rumored in the Street that Microsft will suit Yahoo. For this reason, I mentioned YHOO could be an M & A target, and one had better not to short sell its stock, unless you are day trading. My reasoning is simple: If the rumor breaks out again, the shorts will be buried immediately. Interestingly enough, some guy rebuffed me based upon his understanding of Microsoft adnd Yahoo's business. Nonetheless, I stuck with my stance, because I did not care the rumor would be tue or false. The stock market is not a place where we prove or disprove our thoughts. We care about the risk most, even this risk is originated from the rumor. 宁可信其有,不可信其无。

A few months ago, MSFT wooed YHOO, and we knew that. A lot of shorts got broke, and they are not only retail investors, but also some funds.更多精彩文章及讨论,请光临枫下论坛 rolia.net
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