[dazraf69]

Seems good. Some would argue that further analysis would be needed but this seems very similar to what Peter Lynch wrote about in his books. A friend argued a similar issue with Apple. He mentioned to me how in a our High School where we teach of 3,000, just about every student had an ipod. And that last year that was not the case. He confirmed the same thing at a number of other schools and backed the truck up on Apple with success. Your friend was wise to take profit but trying to time when to sell based on shorts covering is an impossible task. In addition, if your friend felt there was still upside to the company, then perhaps value was loss in the long run by selling in the short term.

I take it you trust your friend but make sure to always confirm info on your own.