LNKD quickie…

We’re trying to put a a more numbers based valuation together for LNKD. It’s been beaten to death everywhere but what the hell. It’s also recovered somewhat from the sell off and is back above $90(still well below our short call price of 98+ last month!).

As is the case with IPO’s there’s generally a lockup agreement of 180 days where insiders can’t sell. The lockup for LNKD is supposed to end sometime in November leading to a massive amount of shares potentially being added to the float as insiders sell. This has been pointed out elsewhere on the web and in analyst reports. Just something to think about.

We’re cautious about shorting right now at 90. As noted in our earlier post $110-120 will be pretty much an automatic short sign for us. We’re also skeptical about this latest market rally and if it continues we’d love to short LNKD into a big rally. The market will come back to earth.

As always, there is significant risk shorting stocks with a high short interest.

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