I haven't watched cramer in about a month and half but last time I heard him (if cramer is where ur friend is getting info) , cramer was saying 7 for this year. Which I think may be stretching it but it wouldn't shock me if they did.
Well said This is impressive as well..not only here in the US but the percentages in the charts at bottom of page for overseas. http://www.websidestory.com/products/web-analytics/datainsights/spotlight/06-28-2005.html
And you find that fairly valued? If this market turns truly bearish, the PEs wil deflate to the long term average of smth like 8-12. I know that the successful dotcoms are held in a special overvalued light but in bearish conditions I doubt the investors will justify these 50-60 PEs for internet companies. They are not paying dividends and the growth will quickly die off as advertising & consumption seriously slows down. But I see that many are actually starting to be convinced that GOOG is rightfully on an endless tear. The bubble mentality is in so seems like the top is near. $350 is gonna be hit soon, no doubt.
its interesting to note, that when GOOG was below 200, everybody was crying short and people where convinced GOOG is overvalued. Now more and more people give up shorting goog, others begin to think that goog at market cap 80 Billion is justified and think its another Microsoft that can bring them millions. You can't invest into a company with market cap 80 Billion and think you can make a million out of 10.000 unless you think goog will make it to the world.com company. You can also see the trend change in the P/C ratio on google. People get tired of shorting it. So it is my strong believe, that the amuni that drove up this beast (lots of shorts fighting the trend) seems to dry up and GOOG begins to get vulnerable here. However I would like to wait for 2 things to happen bevore I short it: 1) Stock Split hast to be offiial announced 2) Stock has to be in S&P and add some 2 or 3 days to that date Just my 2 cents...
Coming out with earnings later this month on the 21st. Should be a interesting couple of days of trading before the announcement.
Could you kindly explain what you mean by" look at the options"? What are you seeing when you look at them? What are they telling you about what hedge funds are doing regarding GOOG? thanks!