GOOG today
- Thread starter Walther
- Start date
F. d'Anconia
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If its "ranging narrower and narrower" during a period when the market ripped higher (ie: the last week) then which way do you THINK its going when the market even turns a little bit downward?
GOOG is a screaming short.
Yes sure heard a lot of screaming from shorts being squeezed, at times !!!
Cramer's 'Mad Money' Recap - TheStreet.com *****
On Tuesday's edition, Jim believes Google (GOOG) is cheap as its multiple is less than its growth rate, but this time he can't take the credit for recommending Google himself. Cramer got this stock idea from RBC Capital's Jordan Rohan, he said. The stock has gotten cheap for a few reasons, but there's only one reason that matters -- "Google got cheap because of the calendar," Cramer said. For any given stock, there are earnings estimates for each year and the money mangers decide which estimates actually matter, he explained. Fund managers stop paying attention to 2006, but look at 2007 numbers, he said. Then they need to decide how much they will pay for earnings. Given that Google is "the fastest-growing large-capitalization stock in the S&P 500," Cramer said he would put a 40 multiple on the stock. Using this multiple, Cramer said, he believes Google shares might hit $500. Next, he recommends USG (USG). The co has paid off all its asbestos victims, so that's done, he said. They also have commercial construction, a space that is performing well. In addition to this, USG's biggest raw cost is natural gas, the price of which is going down, Cramer said. The stock, which sells at six times next year's earnings, is cheap, he said. "There's too much negativity on housing and USG may the way to play it."
On Tuesday's edition, Jim believes Google (GOOG) is cheap as its multiple is less than its growth rate, but this time he can't take the credit for recommending Google himself. Cramer got this stock idea from RBC Capital's Jordan Rohan, he said. The stock has gotten cheap for a few reasons, but there's only one reason that matters -- "Google got cheap because of the calendar," Cramer said. For any given stock, there are earnings estimates for each year and the money mangers decide which estimates actually matter, he explained. Fund managers stop paying attention to 2006, but look at 2007 numbers, he said. Then they need to decide how much they will pay for earnings. Given that Google is "the fastest-growing large-capitalization stock in the S&P 500," Cramer said he would put a 40 multiple on the stock. Using this multiple, Cramer said, he believes Google shares might hit $500. Next, he recommends USG (USG). The co has paid off all its asbestos victims, so that's done, he said. They also have commercial construction, a space that is performing well. In addition to this, USG's biggest raw cost is natural gas, the price of which is going down, Cramer said. The stock, which sells at six times next year's earnings, is cheap, he said. "There's too much negativity on housing and USG may the way to play it."
