Bonehead move of the year
No Google shares in my book.
I think it is breaking the laws of physics. Amazing.. Cramer did say 350 guarentee when it was about 200. LSD is the way to go.. Long slow distance.. This baby will be 200billion in two years and then they need to maintain to stay there.
If google did like most companies do (split 3-1) then it would only be a 10% increase. On top of that I guess we have to see what happens tomorrow. Sometimes companies come out with blockbuster numbers and shoot up 15% then correct about 5% up..
Amazing numbers reguardless!
I feel so foolish. This happened to me 10 years ago, when I first got onto
the internet. My home page was Yahoo. It was right there, every day,
starring me in the face. I couldn't get a grip on the business model. So I
froze and watched the stock go from $4 to $250.
On the other hand, I also sat on the sidelines and watched CMGI go from 5 to 160 to its current 1.32.
It's the burned child that fears the fire
I was zapped by a TASer and it was only 4 then it went to 100 (post splits).. Now its 5 again. :)
I remember eating the Krispy Cream and reading every article how it was the model franchise company. Now their donugts and their stock are about to go kaput!
Years ago, I read a piece of investment advice that kept me and my clients in good shape (not an exact quote, but close enough):
"As long as your reasons for investing/not investing are sound and logical, you are never wrong regardless of the price."
Let's face it, much of the market price action (short-term) is illogically and emotionally driven. A lot of investors love or hate a stock for all the wrong reasons. Hopefully, that's where we offer an advantage over most individual investors.
My first claim to fame, as a broker, was that each of my clients avoided the internet crash because I refused to have them invest in the internet stocks and mutual funds. I didn't understand the basis for stock price valuations, business models, or the euphoria every time some IT grads started a business.
Google baffles me. If I remember correctly, their search engine is based on a (mathematical?) equation that allows for lightening fast speed. Great. What happens when someone comes up with a better equation?
Yeah, I know they just came out with earnings that were (7?) times more than last year's. But Google doesn't fit my idea of a sustainable, viable business. Could I be wrong? Sure, but I don't sweat it.
I too avoided the internet collapse thanks to a strict stop loss discipline. My
stops were being hit a week after the high on March 10, 2000.
Google is however the headline stock of the year...and I'm not in it. Now, all
the mutual funds will be "window dressing" into year end to show
shareholders they got a piece of the action. S&P will probably add it to the
index and another ton of cash will get dumped into the stock.
That gentlemen is my dilemma. "To buy or not to buy, that is the question."
Stop loss is great idea. Another one is from Mr Buffet...If I can't explain Where the earnings are coming from or How the company makes money stay away from it.
Its understandable where their earnings come from and I love GOOGLE, but 100 billion? The bullseye is one their money maker and everyone is going for the gold.
I love GOOGLES ability to be a small company. They react and move fast. They seem to look for things that internet customers need. Great company but 100 billion. I wonder how long it took for MSFT to get to 100billion (with inflation adjustment maybe 50 billion). Either way they had and have something that one needed to utilize a computer. Google is not really required.
Either way we will see. It seems to me the last klan of companies to post these earnings (AOL, KKD, .coms and others) ended up having financial issues. With new regs I would not expect this, but one never knows. Like the 90s when things are good people turn a blind eye.
To stay at Edward Jones after you can produce 250K of commissions each year.....................BONEHEAD!
Yeah.. Remember 2001.. Momentum was the word... DCLK, ENRON, YAHOO, AMZN, ETRADE... Momentum was the reason to raise the bet. Google is in the middle of a monster momentum move!