Are these Monday Movers Going Higher? LinkedIn Corporation (LNKD), Celsion Corporation (CLSN)

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Social Continues its Post-Earnings Effect

LinkedIn Corporation (NYSE:LNKD)’s strong quarterly beat continued to push the social media space higher, as it rallied by almost 5% and other companies such as Jive Software Inc (NASDAQ:JIVE) and Zynga Inc (NASDAQ:ZNGA) also saw a boost in gains. Last week I said that because of LinkedIn’s breakout that it could, and most likely would, trade higher after this week. The stock is now in uncharted territory after a year of flat trading. Therefore, despite the potential for quick gains I would avoid this stock at all costs. It’s simply too expensive and presents no value to the long-term investor.

Conclusion

A stock’s performance during a typical day does not necessarily mean that a stock will break out over a period of time. Too often we associate stock performance with fundamental performance, yet it’s the inconsistencies between these two factors that create value. The ability to identify these inconsistencies is a psychological behavior-changing skill that very few investors are able to perfect. In the past, I have talked about this subject in great detail, and have taught investors how to change these tendencies to return large gains. My advice is to become a smart investor, by learning how to logically assess what caused a stock to move compared to its valuation. Then, if there is a distinction in value you are able to capitalize on the value.

The article Are these Monday Movers Going Higher? originally appeared on Fool.com and is written by Brian Nichols.

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