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45 Comments
- baxtermaddux, on 10/12/2007, -0/+28when everyone is saying that a certain stock is going to be a Top Stock for the year, stay the hell away from it. never buy the stock that everyone and their uncle knows about and thinks is the best
- baxtermaddux, on 10/12/2007, -2/+14in other news, H20 has officially been named the most popular Water for 2007
- rolf, on 10/12/2007, -0/+7Ever heard of Berkshire Hathaway?
http://finance.yahoo.com/q?s=BRKa - Sucat, on 10/12/2007, -0/+6And fool.com people voted it the worst alongside Sirius and XM. Google is great but at its P/E it would have to become the biggest company in the world in a few years to justify that price. I say that because companies with high P/Es expect lots of growth. And while Google has done some wonderful things it is in the advertisement business which is very fickle. It also is going up against Microsoft which earns more than Google's revenue. Microsoft is known to use its cash to come from behind and take markets. On top of that Yahoo is also gunning for Google. Two major companies whose only goal right now is to copy someone's success. And its much easier to copy and catch up than to innovate and separate yourself further.
I don't know whether or not Google is a good buy this year but I wouldn't say its a no brainer. Make sure to do your research people. - dunezone, on 10/12/2007, -3/+7I think anyone could of told you this.
- hughra, on 10/12/2007, -2/+5Last year I won the PA State title of the Stock Market Game in witch students would each be allocated $10k and would have to invest in stocks. I Won because all of my money was invested in the giant Google
- unicornhunter, on 10/12/2007, -3/+6I'm not too sure about that. You may want to stay away from mid-sized stock picks, but if you think long term (Fool.com), then Google will certainly be a good investment right now for a good return in 20 years. It's brand is incredible, and like Seth Godin said, "people care about Google". If people care about a company, that's a recipe for growth and success.
Google is spreading its wings into other areas...but very quietly and testing to make sure their new products are useful and profitable.
Example: with Google's spreadsheets, word processors, and email, I have no use for MS Outlook.
Google has low overhead b/c it doesn't really deal with tangible products. I like the future of this company, but anything can happen. This is technology we're talking about...it could be the next Xerox!
Keep your money. Invest in your own education. - ahhhrn, on 10/12/2007, -0/+3"For every dollar being made on stocks someone has to lose a dollar. Just because you lucked out then, doesn't mean you will luck out again."
That's not true at all. It's true for swaps and many derivatives but if you're buying plain equities there is not always a losing party. If I buy a stock, it appreciates in value, and I sell it, who loses what I gain? - ahhhrn, on 10/12/2007, -0/+3Cheaper stock is easier to buy ====> Splitting a stock boosts liquidity
Some studies have also shown that it boosts the stock price ever so slightly. Blame it on market psychology. - Jugalator, on 10/12/2007, -0/+3Actually, I think this would have been a much hotter tip in 2004 or so... I'm not as sure right now. Their stock has already climbed a LOT in comparison to many companies in their competition, to the point that I have to wonder if Google wouldn't impress a lot in 2007, their stock could be seen as overvalued.
- ahhhrn, on 10/12/2007, -0/+3By virtue of the fact that demand is always increasing, i.e. the world economy is growing, the equities market can not be a zero sum game. Yes, if someone buys something from you that increased in value and subsequently decreases in value after you sell it, your gains are being paid for by his losses. This is not always the case though. With a growing world economy, equity prices increase gradually on the whole so the total winners outweigh the total losers and gains aren't always paid for by someone's losses. As the aggregate global economy grows, you are in fact printing money.
- eliotmat, on 10/12/2007, -0/+3I am a financial professional. I can tell a lot of the comments here are made by people that have no idea what they are talking about.
First, share price doesn't matter on its own. How much of the earnings and future earnings you will get for your share money is what determines how the share price will grow. Currently, analysts expect Google's future earnings to keep growing.
Second, investors pay a premium for earnings growth, and right now Google is growing like Shaquille O'Neil during puberty.
Finally, the next chart is for you people saying the google boat has sailed and quoting "buy low and sell high".
http://finance.yahoo.com/q/bc?s=HET&t=my&l=on&z=m&q=l&c=
At any point on that 20+ year chart you could say oh........ it's too high we missed it. However, just because at one point a stock was priced lower doesn't mean you missed the "buy low" it just means that if you acted quicker you could have "bought lower". - Harry, on 10/12/2007, -0/+2Google is liquid enough for anyone that wants to invest in individual stocks. A split is completely unneeded.
- futureb, on 10/12/2007, -0/+2split would be psychologically helpful. listen to everyone now: "no way, goog is not worth $500-$600. this is crazy, it has to come down. total bubble." even though it doesn't really matter, your average investor will be affected.
- baxtermaddux, on 10/12/2007, -0/+2amen to that.
Sirius was the first stock i ever bought on my own. it seemed poised for success 2 years ago. but they have been in a crippling war with XM since the start and neither one is really making any money. as Colbert would reccomend, it was a decision i made with my gut. what a friggin mistake - fitzfan, on 10/12/2007, -0/+2A stock split is pointless, can you guys not afford a $500 share? No one is saying you have to buy more than 1 share. The only reason to argue for a split was because before the discount brokers became popular you used to have to buy in 100 share blocks, but now you can buy 1 share for a low $7 fee. Its true that stocks have in the past risen pointlessly after a split, and Warren Buffet has said one of the reasons not to split is because it is a gimmick to rise the stock in the short term.
- dankoleary, on 10/12/2007, -4/+6That stock needs to split soon, the share price is just redic.
- dioscaido, on 10/12/2007, -4/+6You are insane if you buy in to a stock that has such a huge disparity between market cap and actual income.
- lburgguy, on 10/12/2007, -0/+2Can someone say "pump and dump". Look for the next google, not this google.
- vitalityjtw, on 10/12/2007, -0/+2You are correct. Buying Google stock is akin to trading baseball cards. It's value is solely what someone else will pay for it. As an owner of Google stock you will never see a penny of money come your way from the profits that it earns, which is what being an owner of a stocking *should* be all about.
- bakagaigin, on 10/12/2007, -1/+2Anyone else think it meant "Google has chosen a top stock photo for 2007"? I guess that wouldn't make any sense, but what came up was disappointing anyway.
- wassim2k, on 10/12/2007, -0/+1Most of us already missed the boat since we couldn't quite get in on the IPO. There won't be much movement anymore, unless you're looking into long-term returns. These so called "experts" also put their "Hot Picks" lists out and then run for the hills. It's a bunch of bull, and they have money to waste; most of us don't. I've gone into hot picks before only to lose everything. Just buy shares in companies that you like, who come up with good products and services, and who have a large following. Sure, this sounds like Google, but they're way over-valued and over-hyped. There are too many strings attached with their stock, and the company is very secretive about its future. Plus this is the Web where things can change overnight. There's no saying how long their AdSense and other revenue streams will last. Also, they're not really coming out with many more products and services. The Google guys said it themselves, that new project development will be slowed down for the purpose of improving existing products and services. Buy something else, unless you have a $100K to play with.
- Electric_Sheep, on 10/12/2007, -3/+4If google paid dividends then perhaps it would be a great stock.
But google has stated that it would *NEVER* give shareholders dividends, which makes it a fool's stock. - senfo, on 10/12/2007, -0/+1I am not a financial guru by a long shot, so could somebody please explain to me why splitting a stock would be necessary? It's not like you have to buy the entire stock outright all at once. Your earnings or losses are still calculated exactly the same. When a stock splits, investors end up with twice the number of stocks at half their value, so in return investors are worth exactly the same amount that they were before the split (assuming, of course, that the split didn't have side affects on the investment community). So what was the advantage of splitting?
- Dcherub, on 10/12/2007, -0/+1hehe "a virtuous cycle"? i like it!
- inactive, on 10/12/2007, -2/+3BH is also a fund. Not just one company. And it's also managed by a stock market genius... Warren Buffet.
- redfox2600, on 10/12/2007, -0/+1Here how I see it. Google's stocks are almost independent from the company itself. They give you no incentives to buy other than the fact that it has the Google logo attached to it.
So for it to increase in price someone some where has to put in more money in it to raise the price. (that money could have been gotten from a growing economy but still it does not negate the fact that someone has to buy it)
So after a certain point when growth has stop (A company can only grow so much) demand will hit an equilibrium and prices will stop climbing. At that level people are neither making money or losing money as there would be less incentives to buy. (i.e. there no evidences that the prices will climb any higher) thus as people start moving on the people who are trying to join late in the game will encounter the loses.
Thus even thought alot of people are making money now it still seems that they are only delaying the fall until later.
Please example your economic growth in more detail on how it affect the stock prices. Maybe that my problem.
(side note: digg need a pm system) - Harry, on 10/12/2007, -1/+2That makes no sense at all....
- eliotmat, on 10/12/2007, -0/+1I got cut off.........
The chart is for those people quoting "buy low, sell high".
http://finance.yahoo.com/q/bc?s=HET&t=my&l=on&z=m&q=l&c=
The point here is that at any time on this 20+ year Harrah's chart you could have said "It's too high. We missed it." You would have been wrong. You can still "buy low", but you could have "bought lower" if you acted sooner. - eliotmat, on 10/12/2007, -0/+1Never mind that last one post. It seems my edit finally popped up.
- Harry, on 10/12/2007, -0/+1Amen....
- redfox2600, on 10/12/2007, -2/+3@ahhhrn
Here is how I see it. The stock market is the purest form of the supply and demand law. It hard to see when someone loses as the demand is constantly increasing. As more and more people park money in it. Basically when you sell out someone is buying your shares in hopes that the demand is still increasing.
(that what most people trade stocks for now is in hope that they can scalp someone else later, i.e. the demand still grows)
Let take a look at JDSU
http://finance.yahoo.com/charts#chart3:symbol=jdsu;range=my;indicator=volumema;charttype=line;crosshair=on;logscale=off;source=undefined
For the stock to even tick at $1000 some poor sap had to buy it at $1000 hell he/she probably thought it was a damn good deal at the time but all that tension as people started taking away the money cause the people at the top to fall.
currently JDSU stands at around $17 - $20.
Just like the laws of conservation of energy you can not "print money" (well you can but it illegal) so the money you make had to come from someone and that the person is paying you for your shares.
Google has a PE of around 60 last time I check, they make money selling adds, when the hype dies and the bubble burst you tell those people who bought shares at $600+ and are force to sell it at $50 that they didn't lose money. - Topher06, on 10/12/2007, -1/+1Total BS. First, how many people can afford $500 a share. Even when it went IPO it was over $100 a share. If you were lucky enough to get in early, then you would have seen your stock grow 5 times its original value, but these days its growth is slowing and even if you paid $500 a share today, 6 months from now it might be worth $550, which is only 10% growth.
Google stock is overpriced and if Google screws up even a little bit, this stock will tank. Google is sitting on a bubble that is stretched pretty thin, and Google is starting to grow thorns. Any "analyst" that is claiming Google is a top stock pick will probably be unemployed by the end of 2007.
The old stock addage is "buy low, sell high". Not "buy high and cross your fingers it will get higher". - drall.kj, on 10/12/2007, -1/+1"Google Named a Top Stock Pick for 2007" should read "Google was the Top Stock Pick for 2006"
What can I say buy low, sell high. Don't buy high and hope it goes higher. - Harry, on 10/12/2007, -1/+1If you can't afford $500 a share you shouldnt be investing in individual stocks, plain and simple. Also, 10% appreciation in 6 months is phenomenal.
- stockpicks, on 10/12/2007, -0/+0Top stock pick for 2007 hmmm, not so hot on that.
Stock Picks Man
http://www.thehotpennystocks.com/ - pennylover, on 10/12/2007, -0/+0penny stocks education for free. check it out. more to come.
http://www.pennystocksmpire.com - inactive, on 10/12/2007, -2/+1Well if Piper Jaffray & Co say it's so... it must be! I think just got an unsolicited email from them saying how this great new stock is going to increase by 5000% in the next 2 days!
Sounds like a way for Piper Jaffray & Co to get in the news, since I've never heard of them before. - plhearn, on 10/12/2007, -1/+0I'm wondering if this is all hype to get the stock to go up, and I hope it works. If you haven't noticed their stock has been dropping for a while now. I bought a little over 48,000$ worth of google stock in early november and for a few days it was making 100$ a day but then out of nowhere it started dropping and never when back up. As of now I'm still down 1600$ =P.
- ahhhrn, on 10/12/2007, -2/+1Safa Rashtchy is the same analyst who last year predicted that Google would be at $600 today.
BURY! - inactive, on 10/12/2007, -2/+1Digg's edit function is acting up today for me... scratch BH and put in BRK
- sockpuppets, on 10/12/2007, -6/+2baxtermaddux hit it on the head.
- inactive, on 10/12/2007, -5/+1WTF?!? Their stock is at $100,000,000,000,000,000,000,000 per share! This is fine and good and all if you work for the company and can buy stock options, but I'd hardly consider it a "top pick" for your average investor.
Marked as innacurate. - redfox2600, on 10/12/2007, -6/+1For every dollar being made on stocks someone has to lose a dollar. Just because you lucked out then, doesn't mean you will luck out again.
For any of you interested read Randoms Walks Through Wall Street.
Monkeys with darts FTW. - inactive, on 10/12/2007, -8/+1Google? Meh.
I'm going to buy some Horny Manatee Inc. shares when it goes public. The stock's sure to skyrocket.
http://hornymanatee.com/
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