That's the math, bears and bulls. That's what you are looking at after all the click fraud and the Justice Department head and the rates that are allegedly too high and all of the new gizmos coming onstream that are so terrific.
No matter that I actually believe that Google can earn $9 this year and $11 next year. Nor does it matter that I believe click fraud is a minor issue, that the Justice Department is, in the end, owned of, by and for corporations -- including Google -- or that I believe the rates are just right and there are plenty of companies willing to pay. Nor does it matter that I believe the most exciting stuff coming from Google is the virtual elimination of the Yellow Pages as an entity. Nah, the bears have it down pat. We certainly should want to pay less than for a Whole Foods (WFMI - commentary - Cramer's Take) or a Network Appliance (NTAP - commentary - Cramer's Take) or even an F5 (FFIV - commentary - Cramer's Take), for that matter, for this 30%-plus grower.
I listen to the logic, I hear what the bears are saying, but I keep coming back to the bizarre notion that there is some price to be paid for owning Google and it is a price that has to be in excess of all of those fine firms because, even with the haircut mentioned -- one that I am fairly confident will never happen, but so what -- we still have a stock that deserves to be higher, not lower. Remember, you must always put yourself in the heads of the portfolio managers who simply must make a decision about buying or selling a $100 billion stock, particularly one so likely to be added to the S&P 500.
Jim Cramer Blog Procter & Gamble Survives and Will Thrive 2/16/2006 11:10 AM EST Consider it inoculated: After withering Magellan fund selling, it's at 52-week highs.
Jim Cramer Blog A Beautiful Conundrum 2/15/2006 3:50 PM EST These financial stocks should be falling apart right now, but instead they're doing the opposite.
As originally published, this story contained an error. Please see Corrections and Clarifications.At the time of publication, Cramer was long Sears Holdings.Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.
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