Skip to comments.AOL Looks Like a Big Juicy Short
Posted on 04/11/2012 6:57:20 PM PDT by NoLibZone
Monday seemed like a time warp back to the giddy 1990s as AOLs (NYSE:AOL) stock spiked by 43% to $26.40. The company announced that it sold over 800 patents to Microsoft (NASDAQ:MSFT) for a cool $1.1 billion. Earlier expectations on Wall Street were that the intellectual property would fetch just a few hundred million.
However, investors should be wary of AOLs current stock price. On Tuesday, the shares were already trading around 4.5% lower at midday. Apparently, at least some of Mondays spike was from a short squeeze, when short sellers rush to close out their positions, forcing them to buy heavy amounts of stock.
(Excerpt) Read more at investorplace.com ...
(This is NOT advice, don't believe anything I write about investing.)
I don’t recommend anyone do short sales - buy puts instead. All you can lose is the cost of the put.