ANSW (Nasdaq)- a.k.a., answers.com - Dog Alert
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Current Price
$13.77 US
Comments
If I had a margin account, I'd feel pretty comfortable shorting this one. This is answers.com, and if you've never heard of them, don't feel bad. Their core "competancy" is one-stop internet search (i.e. all info is assembled on one page, no surfing links).
The reality is......it's pretty much a shell around Wikipedia (and other sites of far lesser value). The funny thing is, they have to pay Wikipedia for the rights to show their content. The true value is in Wikipedia, not answers.com. (can i buy that please?)
This is a company built on hype. I still remember an article that came out asking the question, "Is Answers.com the next Google?". That one article basically made them.
They've had a year to come up with a real business plan while the hype lasted, and the best thing they've come up with is a natural language interface. I remember that idea from 1999.
I would've been a bit reluctant to short anything in the search realm six months ago. I think Google factor has made everyone reluctant to short it, especially with such a small market cap. But now as Google finally is showing signs of topping out, I don't think it's a risk anymore. Look for a delisting by the end of '06. :)

