GOOG up, another historical high.

On Tuesday GOOG gave up a few bucks so what does Cramer do Tuesday night, dedicates a short segment on GOOG and how high he sees it going. What happens the next day. The lemmings jump in and buy it up to 486. Will they get their 500, IM SURE. There after who knows.

 

Warren Buffet would never buy GOOG, . Neither would I.

 

time to get out; even he is using it.
http://thinkprogress.org/2006/10/23/bush-says-he-uses-the-google/

 

HOST: I’m curious, have you ever googled anybody? Do you use Google?

BUSH: Occasionally. One of the things I’ve used on the Google is to pull up maps. It’s very interesting to see — I’ve forgot the name of the program — but you get the satellite, and you can — like, I kinda like to look at the ranch. It remind me of where I wanna be sometimes.

 

Single stock futures or straight calls ( bull call spread) may be another way to play this stock short term. We all know this stock makes no sense on valuation, but what are you gonna do when it continually breaks new highs over and over again. Looks like a runaway gap on earnings. 5 day low is $419.00?!! The stock has had 8 new highs this year. I have to admit I giggled when they said google would go to $450. Don't ask me how, but this could be a $600 stock.?

Here is a link to the analyst upgrade/downgrade. Are these guys hiring? I would be glad to get paid for the obvious. :eek:

http://finance.yahoo.com/q/ud?s=GOOG

 

I feel the price will appreciate, to where, I dont know. However, you have to understand that Google uses a veil of secrecy in its organization. There are many processes that are not transparent.

Let me give you an example of a company that is 100% transparent. Coca-Cola. Everything about the organization is made public down to the last can of soda in the inventory. Its easy for an analyst to figure out Coca-Cola.

However, Google is very secret and tight lipped about most everything. How do they price their pay per click advertising? Even the people who use the adsense on their websites can only sit there with a calculator and guess. For Google to make the numbers each quarter, they will simply keep shaving away from the people who post the ads on the sites.

Where does this take us? Basically Google relies on a "trust us" method in a world of business that few of us understand.

I understand how soda is bought and sold. I even know a thing or two about medical lasers. Pay per click advertising? Who knows?

When veils of secrecy are used, that usually leads to a scandal much like options backdating. Will one day Google be embroiled in a scandal? History has shown us that not even the President of the United States can keep going a conspiracy. There is a good chance that Google's secrets will be revealed one day. When those secrets are revealed, the next question is what happens to the stock price.

 

I agree this type of stock could tumble massively at any point in time. This is why a call option is probably a better way to go. Pure Alpha, or whatever those option cats call it. With options you don't have to pony up $488.00 per share. After all its a tech stock; I am simply saying that the momentum is up if you look at the chart. Will there be a day of reckoning? probably, but I doubt it will be announced on CNBC. My guess is $550 with several smaller corrections along the way. Now please give me a tv show and buy the 500 call.