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onewake
November 7th, 2006, 01:22 AM
Yes, No, Maybe?

I seem to ever be spending more with adwords, which intuitively tells me this COULD be a good company to invest with - but at $480/share??

Do you have any thoughts or insight? (P.S. I'm looking at a long term run with this stock if I decide to pull the trigger).

Thanks.

ColinSick
November 7th, 2006, 07:43 AM
Onewake .......I have been bearish on GOOG due to the fact that they cannot accurately predict their own earnings. They do not give any guidance to analysts and every quarter they seem to surprise even themselves. With the stock as richly priced as it is I think even a minor earnings miss could send it down 20-30%. I think the stock is priced for perfection, just my two cents.

I have taken some losses this year betting against GOOG. They certainly seem to be firing on all cylinders but I think that a company that can surprise to the upside can just as easily surprise to the downside.

I am staying away until they prove they can accurately forecast their quarterly earnings.

onewake
November 7th, 2006, 11:14 AM
Some very good points. Between this last earnings report and the purchase of YouTube, shares have soared in the past two weeks, however it does seem as though it could just as easily be the other way on negative news.

In comparison, how do you feel about Microsoft and Yahoo - both have some big releases ahead of them.

Mpio
November 8th, 2006, 12:40 AM
I am no "Expert" like Colin or Nebula when it comes to the Stock Market.

However I do know basic Math. Let's say you bought Google at $480 a share and you were actually able to buy only 1 Share. It would have to double in order for you to make $480, correct? Not likely to happen anytime soon.

Now you are probably going to have to buy a "Board Lot" of 100 Shares which equals $48,000 dollars in order to get into the Stock.

That's alot of coin.

Now let's say it goes up by 30% per share in the next month. It could and you would earn $14,400 less Brokerage Fees. However, what if it goes down by 30% as Colin has suggested it could. Can you afford a "Hit" of almost $15,000 in one month?

Now, let's take a look at another scenario. Research an up and coming stock in the price range of a $1 Buck. Buy 15,000 shares at this price. If it goes up by 30%, you make $4650 in profit. If it goes down, you lose $4650. Less risk with a quicker ROI if you "Click" on the right Stock. They are out there too. Sleeping Giants.

What I always did was buy let's say $2000 worth of an up and coming stock. Once It doubled, I would sell 1/2 the shares and get my Money out, while leaving the Profit Invested. Most times, It would end up going higher by 25% or so and then I would sell it all and look for another stock to repeat the above said process. Less Risk and I slept alot better.....when I could actually sleep :lol:

Colin or Nebula,

Correct me if my analogy is wrong.

nebula1
November 8th, 2006, 02:39 AM
Thanks MPIO for the implifications that I'm an Expert, Nice complimient :) Colin is kinda like one of my teachers :lol:

Yeah, youve got it right, you never lose until you sell but sometimes you can end up with a stock that is only worth 60% of what you bought it for and the blasted thing just stays down there forever :( -That's the painful side of trading.:lol: I would ask around about Put options and such, that's something I still need to learn how to do; betting against companies, I think thats what Colin was saying in regards to his buying Goog puts.

ColinSick
November 8th, 2006, 11:19 AM
Mpio is correct except that most brokers will allow you to by an "odd lot" of stock..........even one share of GOOG.

I don't really like MSFT or YHOO at this time........they both keep falling on their face and can't seem to get it together.

Call options are another way to play the long side of a stock like GOOG.

The July 2007 $500 calls are @ $42