I dont like Google. The news is simply too good, actually the news always seems to be good. I like buying stocks where the news is at its worst. Delisting notices, options scandals, lowered guidance, etc. Thats because eventually the news will be good. I dont know how high Google will go up, but I do know one thing about stocks with bad news. The bad news stocks will go up eventually. The good news stocks will have to keep the good news going to substain that high price. The minute the good news becomes mediocre then the stock will get a haircut. The bad news stocks just need one good news release for a pop. American Airlines at 2 dollars was a screaming buy. $1000 invested at 2 bucks would be $12000 today. Buying a company with bad news is less risky then buying options, yet you can realize a large gain just like options. My favorite sector right now is the least favorite sector. Semis and hard drives. For good long term short plays, just watch CNBC. Whatever they are saying is good today will be bad 6 months down the road.
yeah but historically [and statistically] companies that beat estimates by a mile tend to keep goin' higher for weeks to come while those that miss or are surrounded by bad news keep goin' lower for ages. u gotta be much better with your timin' when buyin' beaten up stocks and u can bump into huge paper losses.
Yes....the easy money is still to come....just seems to be risky.... BIDU is the next big swinger....going to 140 by the end of the month....then higher just my thoughts
Lets note that BIDU is not a Google in anyway, shape or form. The guys who originally underwrote Bidu, Morgan Stanley, are still bearish on the stock. Baidu has a 2.9 billion market cap with only 68 million in revenue. This is a traders stock and not for investment.
Great strategy...everyone knows stocks will never continue to go down. And everyone knows stocks never become worthless.
Thats right, over the long run, stocks never go down. Now if this were 1929, you would be setting fire to your shares of IBM and selling them in a panic. However, I would have locked them up in a trunk and saved them for my future ancestors. Now you might have bought Yahoo when its over 100 and now are going to stick it in my face. Buying a company with a large P/E is always very risky. The street is betting on good results. If the company doesnt deliver, then the stock gets axed. When a man is beat up and thrown in the hospital, eventually he will re-emerge much better. Whereas a track star will have to continue to beat the times. I bet on the hospitalized man for more growth then the trackstar. In looking at this chart of the Dow Jones, I see a chart that continually goes up. There are a few technical dips and a speed bump. I follow the strategy of capitalizing on people's fears. You have to know the company and the product they produce. When CNCT went to 7 bucks over the summer, I got in like a bandit. On the message boards people were screaming that the company would go bankrupt. Look around you though, we need Rogaine foam. Look at the board and the executives, a whos who list of different people in the health industry. This gem scored me a 57% return within a few months. The key here is the product. Rogaine foam. The average age of males in America is 36. This is a product that will boom. I still have great prospects for the company, but have moved on to other investments.
Google symbol GOOG graph shows price trading within the high and low limits of the past 12 months. I see price of GOOG stock rising since the initial public offering August 2004. I recall similar situations where stock price increases above the upper limit of the trading range and continues to increase, sometimes significantly.
Which world are you living in? Over the long run, i.e. given enough time, most stocks go to zero! It is paper. Companies don't "live" forever. Check it out...