RockoChen

Rocko Chen

Real Money Earned: $0.93
Location: NEW ZEALAND
Member Since: 9/01/08
Portfolio Total:$1,118,230.37

Stock Analysis: 13

Portfolio Start Date09/01/08
Annualized Return:7.3%
Total Return:11.8%

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Stock Pick by Rocko Chen

GOOG: Diminishing operating capacity

Start trading GOOG with real money!

Rate Analysis

2 ratings

Posted 414 days ago on 1/24/09

Market call:GOOG will go DOWN
Target: $300.00 on 2/24/09
Current: $579.54 (78.48% from time of market call)

They're letting go a large number of employees. They're willing to sacrifice capacity to create profit because the top management believes there's absolutely no way an expansive market exists for further earnings. If the execs have little faith in earnings growth, shareholders have only a prayer at best. Technially, the stock is positively correlated to the indexes. As the general economy slows, it'll fall further.

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Comments

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Andrew Yates

Posted 2/2/2009, 3:06 pm

I agree with nate......the positive earnings suprise should give you a clue. GOOG has a lot more room for expansion, especially if they go in M&A mode. With their current multiples, this stock is looking more attractive than ever.

Nate Miklas

Posted 1/29/2009, 8:55 am

buy this company buy all you can trust me!

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