Sunday, August 19, 2012

Investors Have an Appetite for OpenTable

Whenever you want to gauge the health of the market, looking at the internals is always important. In addition, it also helps to look at how the market's recent high flyers have been holding up. One of the market's biggest high flyers over the last year has been OpenTable (OPEN). The online reservation company is already up 40% this year and trades at 155 times trailing earnings.

Even with that lofty valuation, however, traders are once again scrambling to get in on OpenTable. In today's trading, the stock is up 4% and just shy of the triple digit mark. Shares of OPEN peaked four days ahead of the S&P 500 on 2/14 and then sold off 15%. With today's rally, the stock is once again back at all-time highs. Will the market follow?

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