CMGI

[tenkrunner]

    CMGI was doing fine until Cramer made negative comments about $2 stocks after hours yesterday. He did lump CMGI in this group. From the minute he made these statements, CMGI dropped from 2.41 to 2.32 afterhours. Investors saw that movement in the pre-market and bailed. I will wait and see how things look Monday before making a sell decision. I do know i have lost more than gained by holding through earnings. Being the coward i am, i will probably sell and take my small profit.

[David Randolph]

«Risk Trumps Reward in $2 Stocks Game», Cramer did.

And "investors" bailed out of CMGI. Come on, according to Cramer's text, the only crime this stock did is that it is quoted at around $2 a share. On my lecture that's not a crime or a benefit, the absolute price of a stock is no motive to buy or sell. Only changes matter.

I'm amazed how the stock could react the way it did from his words ... but it did, so we have that red candle on the chart below. Of course I won't follow the crowd since they're usually wrong ... and I'll hold the stock just to see what happens.

[saffeysite1]

THat's the way to play it.   Cramer says sell, you know to hold it.  I think earnings will be good.  I have noticed that when a stock is downgraded and has a sell off, then in about three to four days it's upgraded again, the stock shoots back up.  I am going to keep following this theory.  Or maybe this is old info.

[AussieTrader]

I do still have CMGI though and will watch today before I decide how to play. I have been on both the receiving end and the benefit end of earnings moves, sometimes it is best just to step aside whilst the 'reaction' plays out. As yet I am undecided.
Mike

[mek]

looking great!!!!!!!

http://www.stockhouse.com/news/news.asp?newsid=2796262&tick=CMGI

[pathbreaker]

Hi, David,

Would you please comment on today's afterhour selloff?

Thanks,

John

[AussieTrader]

My decision to hold through erns or not was made for me by my stop which activated whne CMGI went through the 9EMA earlier in the trading day.
Mike

[David Randolph]

CMGI has a problem - there are so much bagholders in it ! The stock was one of the first to come down hard after the internet bubble so it was one of the favorites of the public who wants to buy the cheapest stocks available. It looks like those people still have CMGI, so it's very hard for the stock to advance, it needs a compleat clean up or really powerful demand.

I believe earnings were good but the market response was a down move - that's bearish. But I don't care, at yesterday's close I had an open profit of 5% on CMGI, now it seems I'm losing, I don't want to let a profit turn into a loss (or let a small loss turn into a bigger one), so I'm selling at today's open.

I never want to ear about this stock again !

[assamo]

CMGI finally close the gap between 1,98-2,02!! Prepared to another up leg? 

Any thoughts?

[phabrux]

There is not more than 1 or 2 days to wait before we will know if CMGI crosses the resistance line from this flag?
I say we should wait until around 2.02 before thinking of jumping in it? (2.01 is the highest level in 5 days) 
CMGY could target 2.6 easily IMO.
What do you thing?

[AustinPowers]

I'm in on this one for a couple of weeks now at $1.94 and patiently waiting.  That lower rail of the flag is part of a 2 year trend line that it has been hugging so let's hope it holds.  I know last year at this time the stock dropped below the trend line by a bit but it had a very strong rally at the end of the year.  This stock can be very frustrating.  Watching closely

[David Randolph]

CMGI finally close the gap between 1,98-2,02!! Prepared to another up leg? 

Any thoughts?

Nah, CMGI didn't do nothing since I sold it. Boring stock with bags of bagholders in it. Someday, who knows?

[David Randolph]

I believe we're at the final stages of the bull market that started on March 2003 and took the S&P 500 from a low of 780 to 1247 points. I don't know if it will take days or weeks or even months but there are several signs that a long term bear market could unfold again.

I've seen (or at least studied) many bull and bear markets since stock market history began and they all have pretty much the same behaviour when they come to an end. At the final stages of a bull market investors pick up the forgotten stocks, those that were left in the ground as others rose immensely.

Those stocks deserve their place in the sun too, but there's not much time now. So they will rise fast before everything falls appart and the general market starts trending down.

I'm not particularly interested on the specifics of each stock, since they are acting as a group and will continue to do so, based almost exclusively on mass behaviour.

You see, now everything's gone up, the energy bubble is now completely unfolding and getting to an end too, so big and small speculators as a mob will jump on these liquid and low priced stocks. I see 20 to 100% upside potential in each one of them in a few weeks time.

CMGI fully qualifies, it is one of those abandoned angels. I will buy CMGI for the 3 Stocks on Fire Portfolio at today's open.

[ScottishTrader]

Ahaa!!

I was going to buy CMGI today at the open anyway

Now I've got 3SOF on my side, even better

Good pick David

[shawFund]

CMGI weekly chart from 2001-2005.

Year-end rally happened every year since 2001.

It has been profitable since 1st qt 2005.