Home > Markets > Stocks > Google not a buy right now

Google not a buy right now

  1. 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.
     
  2. 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.
     
  3. 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
     
  4. 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.
     
  5. Great strategy...everyone knows stocks will never continue to go down. And everyone knows stocks never become worthless.
     
  6. 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.
     
  7. for now goog is up 40$ in AfterHours
     
  8. 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.
     
  9. 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...
     
  10. more proof that our educational system is not doing a very good job.
     
  11. Well there is differents between trading an investing and I have to think Goggle is a trade. I don’t think it’s worth the money its valued at but I would not be shocked to see it at 600. The value of it seems unreal and at one time everything comes back to reality.
     
  12. Yep, they dont live forever. However, there are some companies that will live a lot longer then any person reading this post. Those companies that will have a very long life are easy to spot.

    Goldman Sachs is one example. It is a bulletproof entity that can resist just about everything except nuclear war. Many of their former employees are at high levels within the government and in the corporate world. They have been in existence since 1869. I can say with confidence that this company will last for a few hundred years.

    Large insurance companies are another good example. The concept of insurance has been around since 3000 BC. In 1750 BC, some of the first insurance contracts were written by the Babylonians. The only way the need for insurance will cease is the extinction of the human race.

    Coca cola, Pepsi and McDonalds. Human beings love that sugar high and the taste of the cheap fatty foods. These companies are in every part of the world and they just keep expanding as the population increases.

    Proctor and Gamble- Been around since 1837. Their products can be seen in any store around the nation. There is always a need for their products and few companies compete with them.

    Google, Yahoo, etc. are examples of companies that will most likely have a short life. I dont mean a few years, but maybe 20 or so years. I can imagine a time when Google and Yahoo probably will merge operations. The enthusiasm for Yahoo was great in the late 90s and then Google took over. Who is going to take over in 2010? At this very moment, someone is programming a better search engine or a better website.

    Another reason why I believe that Google and Yahoo will have short lives is that when I look under the dividend section I see the words "N/A".

    When Warren Buffet says he doesnt understand tech companies, he doesnt mean that he doesnt understand computers. He means he doesnt understand how a company can exist without a dividend. Why would I place a stock in my long term portfolio that doesnt have a dividend reinvestment program? It does not make any sense at all. What would be the reward for me to hold these types of companies?

    Those companies that will be around almost forever are easy to spot. They are the large cap dividend producing companies that have been around in your life since you were born.

    What about Ford and General Motors? Nope they wont go bankrupt. They are so big and employ so many people that the government would not allow it. In fact, the governments pension company cannot afford to take on the pensions of these large organizations. They are going to shimmy around for just a bit more, but they will survive and, in a few years, they might once again power forward. I would like to see GM and Ford merge together though.
     
  13. eagle488, the good news is you have 20 years to walk around with your head held high, claiming you know something.

    After the 20 years are up you may have some explaining to do
     
  14. I agree they will merge but what will they then be called? Can they reuse the name

    American Motors?
     
  15. how about manchester?
     
  16. Why is that pumpee and dumpee manchester thread still on here at elite trader?

    At first it seemed funny..now it is getting ridiculous with all these sudden new users :mad: posting pumpee trash..

    I'm ignoring that stupid thread now and BTW, what does it have to do with GM and Ford?
    NOTHING

    GM and Ford could merge and call themselves:

    Patriot Motors
     
  17. I observe GOOG price increasing above historic record high price.
     
  18. that sounds so cheap ... kind of a yugo of american brands.
    :)

    very fitting
     

  19. FWIW, here is what I am seeing on GOOG. Looks like it has been in a continuation pennant (to the upside) since last October. The breakout was at 477 so I would not long until about 485 just to be sure. JMHO

    That being said GOOG still scares me so I'll play a wait and see game
     
  20. Yeah, then they can make Cheney CEO :D
     
  21. I am no trader but I gotta tell ya...Google will continue to rise, even after dips, and it will not get slaughtered until they miss earnings for the first time and then it is going to be a sell off like the world has never seen before.
    This event will happen in 2007 but which quarter, I dunno.
     
  22. ....and I'll be buying:D