Everyone knows Google, and everyone uses Google, so why not own a piece of it?
Based on valuation, the stock is cheap and it’s now considered a value stock. It’s current multiple, meaning P/E ratio, is now less than it’s growth rate:
Current P/E: 32
Growth rate: 36%
PEG Ratio: 0.60 (less than 1 signals the stock is undervalued)
All of the information highlighted is enough for me to add to my position in Google, but the thing that really gets me excited is Android.
Android will allow users to create software for mobile phones sort of like the way Microsoft invented software for the computer. In my opinion, the cell phone is the new computer, so why not buy the next Microsoft.
Software development for mobile phones is in it’s infancy, and Google will have the competitive advantage when it takes off.
Check out this interesting article. The iPhone is already starting to attract software developers, and Eric Schmidt, the CEO of Google, sits on [[AAPL]] board, odd no? This trend will be huge and I am an big believer in it.
Google Android explained:
[youtube:http://www.youtube.com/watch?v=g4m73NXn7hY 450 300]Take a look at Google’s chart since it’s IPO. The stock is currently sitting right at 50% retracement, will this act as support?
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Update: So much for my bounce theory, it looks like Google will be under significant pressure due to Barron’s article.
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Add AAPL to that list as well at 120.
love AAPL here
Good post Cajun.
I’m not sure that I agree on the valuation part, but I like it here technically.
GOOG could have an earnings miss and hit an air pocket dicusses 24/7 Wall Street. It quotes Fred Hickey who I respect.
http://www.247wallst.com/
Just saying.
Just read the Barron’s article, looks like the company will be under some pressure come Monday.
50% retracement may not hold, so much for support.
I think you’re right about GOOG & its worth a shot sub 430. IMO, there will be a retrace rally running into the summer of 15%ish, where at the top, the recession will be declared over. At which point it will be time to get 300% short for a swift move down, elevator shaft style.
Once the Olypmics are 1/2 over, it will be time to position oneself for a global debanking, the likes of which have never been seen.
32 PE.
36% growth rate…
How do you get the 60% PEG ratio??
Where is it in Barrons? Can’t see it. Anyway that guy is always bearish on GOOG.
http://www.alleyinsider.com/2008/3/_google_to__350_
I have heard that this website is wonderful, but after visiting it I’ll disagree with most of the people, who think so. Yes, there is some fresh and interesting information but most of it looks unprsentable. There are so many ways to check information, haven’t you heard of it? After trying it several times I realized, that it’s not unique.
Sounds perfect to me. I have read this post with a great pleasure. You should write much more often.