As Valentine's Day approaches, Motricity
"Overhyped stock with only 4 months of public history behind it. Cramer got behind it big time and so his lemmings are pumping it like there is no tomorrow ... as soon as the momentum crowd abandons it, the crash will inevitably follow," Foolish investor Denarii06 wrote in shorting the stock in CAPS in October.
That call now looks prescient. Motricity, which delivers tailored data to mobile phones, is down more than 10% year-to-date, but has been selling off since early December. Color me thrilled.
Well, sort of thrilled anyway. I first opened a position in Motricity at $18.66 a share; I'm down a little more than 11% as of this writing. But I don't think the downtrend will last, and I'm willing to bet real money on being right. (I'll be adding to my position as soon as our Foolish disclosure rules allow.)
Why? Blame Verizon
Yet it's not much of a surprise. Verizon does business with Motricity. So do AT&T
Do you agree? Disagree? Please vote in our Motley Poll below and then leave a comment to explain your thinking. You can also rate Motricity in Motley Fool CAPS.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is revving its engine. Vroom, vroom.