TradingMarkets.com
Bullish On Google, Here's Why
Friday February 10, 12:25 pm ET
By TradingMarkets Research
I think it's finally time to start getting BULLISH on (NasdaqNM:GOOG - News) again. If you'll remember, in October of last year everyone thought I was crazy for saying GOOG was going to $480--$50 before it even hit $400 and way before the penguins started trying to one-up each other in the Google upgrade game.
Well, as it turns out I was wrong. Google didn't top out at $480, it topped out at $475....but I'll take it ;) Here's the chart that shows the action since that call:
Well, I guess I'm crazy again, because I think it's time to start picking up some shares of GOOG at these levels and lower---here's why:
Everyone now hates Google: Wall St. is not known for loyalty. After a single miss of an over-hyped earnings estimate, it's "off with their heads!". I like buying when everyone else is selling (and vice-versa afterwards is even more fun!)
Google still has AMAZING growth: What Google has done over the last 7 years is simple--they've changed the universe. Guess what? They're going to keep doing it, and their top and bottom lines are going to continue to grow at awesome rates.
The smartest people in the world work there: If you aren't smart enough to know why this is good for the future of Google, then I've got a VP position at Enron for you.
They have the best product in the world: Quick--search for Shoeless Joe Jackson's rookie-year slugging percentage....see what I mean?
The stock is approaching a support level: GOOG went up fast, so it came down fast too...that's normal. But don't expect this free-fall to last for much longer...old gaps on the chart tend to act as major support levels once the stock gets back down to them.
Yes, GOOG still has a high P/E ratio. Yes, GOOG still has a starry-eyed leadership team that seems more willing to compromise with the Chinese government than the US government...but stock trading is about big profits, and Google delivers.
Andy Swan |
