I’m bullish on Google, here’s why
I think it’s finally
time to start getting BULLISH on GOOG 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
Andy Swan created and
co-founded DaytradeTeam Service five years ago on a principle of empowering
individual stock and options traders with the techniques and analysis methods
typically reserved for elite professionals. His expertise in technical
analysis and commitment to educating members earned DaytradeTeam a top-ranking
among advisory services for several years.