Thoughts on a trade I didn’t make.
So amazon unbundled Stamps, but who knows, may reinstate them as soon as Stamps’ new program is up and running, but this goes into the “Too hard to figure out” basket for now.
I wrote this post over the weekend . http://discussion.fool.com/my-evaluation-of-stampscom-32780327.a…
I had been analyzing STMP as an investment and happened on the amazing fact that amazon had suddenly sent out an announcement on Friday that, as of Saturday, Stamps shipping options would be removed from Amazon’s Buy Shipping Service. A momentous announcement for STMP stockholders (I thought).
I expected STMP to open several dollars down. But it opened unchanged, up a half percent perhaps. And it just sat there.
I was sure that all the smart guys already knew about this announcement and I wondered whether I had just misunderstood its significance, or even whether amazon had already cancelled it. At any rate, it stayed in the “Too hard to figure out” basket.
Then, a couple of hours before the close, it suddenly dropped, and fell $6.00 by the end of the day.
Now, I have never shorted anything in my life, but I think that even if I had thought of shorting it, I would still never have imagined that I had picked up a piece of momentous information and none of the “smart guys” who followed the stock had heard about it. There must have been thousands of people who received that announcement from amazon. Where were THEY on Monday morning?
It would have been nice to have made a little profitable day trade, but I’m afraid that it was such an odd and anomalous situation that there was no way I would have acted on it. Interesting though.