Stock Watch: Coverage From Blodget Propels uBid

For better, or worse, it’s becoming clear that there are few analysts on Wall Street as influential as Henry Blodget, who made his name by giving Amazon.com a pre-split target of $400 when he worked at CIBC Oppenheimer last year. On Monday, shares of the online auction site rocketed nearly 30 percent, soaring 6-15/16 to 30-3/16 after Blodget, now with Merrill Lynch, upgraded the stock to near-term buy from accumulate.

Blodget said that uBid’s stock is undervalued, and he gave the stock a 12-to-18 month price of $50. uBid stock also benefited Monday from the strong buy rating it received from Banc of America Securities on Friday.

uBid is a prime example of a stock that ran up too much too soon only to have the bottom fall out. This might seem hard to believe, but the company’s 52-week intraday high is $189. The stock has been on a steady decline pretty much all year. At this point, uBid might actually be relatively cheap for an Internet company, but this is the kind of stock that can give you an ulcer.

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