SBUX and CMGI

No sooner do I say keep an eye on SBUX than Notable Calls reports that they are having their annual meeting today. This might engender some interest in the shares during the session.

In the same Notable Calls article there is some talk about CMGI. This was a real MoMo stock in the roaring 90's. It peaked in Jan '00 at 160 and went down for the next 2 years to cents. And it was being purchased the entire way because it took it two years to get to cents. I remember this one (never owned it directly probably owned it through one or more mutual funds but who didn't in those days) because I was listening to a radio program - one of those call in shows about the stock market that were so popular back then and this was probably about April '00 or so - the stock was about 60 then. Anyway someone called in and that person was in a panic over the fact that they owned so many thousand of shares of CMGI bought on the say so of this host at 120 or so going up. And then they didn't sell on the way down because all of these hot shots kept saying "stay the course" - hmmm, that sounds familiar. "Where'd the money go," the person asked, in tears. "Just gone," said the host, "just gone." The person tried to argue but the host just kept repeating, "Nope, just gone." There was some real sadness in his voice. He was gone too in the next week and the station changed formats shortly thereafter. I think they're in the religion business now. I don't know how many of these early Jimmy Crack Corn's were sued but all of them should have been taken out and hung.

Anyway - somebody is buying CMGI. It is a day traders favorite - lots and lots and lots of shares and 2 and 3 cent runs all day long - 27 cent ATR on the weekly basis so you can't get too hurt even if you have 10 or 20 thousand or more shares. But somebody big is buying - it has had two months of increasing volume and increasing price. So either somebody knows something or nobody knows nothing but it looks like a spec play if you play it at all.