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.