Description

this is a short idea based on the stock being quite overvalued. I trades at near 100
times sales and has no earnings and little cash. They are planning a merger
with phone.com which is also overvalued and may even fail. With the market
environment such as it is currently, this one looks like opportunity waiting
to happen. Anyway you slice it, this one is bound to go down as their
business model just doesn't support a market cap of over 8 billion.

Catalyst

The current bearish tone to the market plus the extreme overvaluation leaves
no room for error. Add to that the uncertainty of the proposed merger
and the fact that if it goes through the valuation becomes even greater for
a company with little sales and no earnings. If growth slows or interest
rates go up again (which I think is going to happen), watch out below as
this one will quickly drop below 100.