Monthly Pick-AMZN-SHORTING
AMZN is at a very high rick level, with a PE ratio of 100, month then double of GOOG and YHOO.
Legg Mason/miller and other funds chose to sell significate amounts of stock prior to June 30, 2007 as reported last week. Of course when it went to $89.00 in late July we do not know yet if these institutions completely liquidated, or not.
All of the millions of shares they sold, of which in most cases have been held for over twn years were sold below $68.00 per share, as this was the highest PPS prior to 6/30/07.
If these major holders of the stock believe that amzn is a sell @ $68.00 what would lead you, as a long to believe that the stock is worth more than this price.
Everyone should know that AMZN is overvalued and carries tremendous risk at these levels. But this stock can also go higher because it was never rational to begin with. I think that there is a good chance that we head into the 60s next week. The market should resume its selloff and AMZN should participate.
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