360 Degrees of Google
Take Google. I still believe Google can earn $10 and trade at 60 times earnings. But that's a destination, and there is no interstate highway in this business, just winding roads that don't get there as fast as we like and whining kids in the back seat who make us stop and get out, and irritate us.
But if you had unloaded some Google when it was flying, just think of what you could do now. You could buy a little back -- not all of it, just a little. And then you could hope that the market goes down more. If it didn't, you'd be OK because you bought some here. If it did, you could buy even more.
It doesn't work like that, though, if you never take profits, or if you believe that selling is going to leave you naked.
Fundamental Concerns: Google's Momentum Could Wane by Frank CurzioThis column was originally published on RealMoney on Jan. 19. There is no doubt that Google is the darling of Wall Street. The Jan. 18 downgrade by some small shop only serves as the exception to the increasingly popular analyst game of "top my price target." But what's being overlooked in this game is that the stock's further rise isn't dependent on Google's business. It's dependent on momentum. Since its IPO at $85 a share in 2004, Google shares have soared about 425% to $450 a share. I admit I was on the sidelines the whole time during the move, but enjoyed watching the action, as well as the analysts race their targets ever higher. But shares are not moving higher on valuation here; they are moving higher on momentum. Momentum consists of two important conditions:
- Positive sentiment
- Favorable market conditions
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV