Analysis: Shanda Interactive downgraded by Piper Jaffray

[All Blogger sites, this one included, are again not accessible in China today!!!]

Today, Shanda Interactive, of which I have shares, is downgraded by Piper Jaffray.

I think it's again one example of questionable, if not manipulative, calls by an analyst (Remember Bear Sterns' call on UTSI?). We should be able to find out whether the market agrees with the call or not within a week if not sooner.

One more information: SNDA's chart clearly shows that someone was dumping the stock yesterday, in anticipation of today's downgrade. Another such example is Amazon.com, which is up over 10% following its earning report today. In this case the people in the know were buying or it or covering their short positions yesterday. Marketwatch's Bambi Francisco notes that:

Amazon (AMZN) shares shot up 11% in after-hours action, partly on relief the retailer didn't blow its quarter, and to a great extent because those who sold Amazon short prior to the results had to run for cover. Amazon's short interest stands at the highest level in at least a year. According to the Nasdaq, 43.6 million shares are held in a short position.

AMZN's action may also explain some other tech stocks' performance today: shorts are scared and are starting to cover their positions NOW. For example, heavily-shorted UTstarcom surged over 4% today for no news.

For other China-based tech stocks, SINA and Sohu are also going up for no obvious reasons (short covering very possible). BIDU is an exception: it is still bearish, even though the Google 's gap-up a couple of days ago provided a temporary lift for the company.