critter
08-18-2004, 02:27 PM
HEY ALL..
I noticed the posts on here about the Google segment on Nightline last night. After the show I spoke with a friend of mine who specializes in HIGH TECH investments, and like the economist on Nightline last night, he had similar recommendations.
Basically, Google has already dropped their IPO to under $100 for the basic reasons the economist discussed last night.
Should Google stock open in the $100 range, it would be over-valued. What this means is Google would have to grow FASTER then the likes of EBAY, MSN, INTEL in their first 5 yrs to make up the ground for the over-valued stock. The huge risk here, is if their stock opens in the $100 range, it seems almost impossible for Google to sustain the pressure and grow as fast as MSN did back in the day. Those days are over!
With that said, it seems the best bet, regardless of Google's IPO or original stock price once it hits the NASDAQ, would be to wait it out for a few weeks, hoping the stock will drop abit, and level off once the market and economy cools off after all the GOOGLE IPO HYPE, thus bringing it down to a PRICE which is much closer to it's actual value and make growth much more attainable...
SEE if the stock opens at $100 and really is only worth $50, then they have a ways to go. if they don't grow EXTREMELY FAST, the stock will PLUMIT to a number much closer to its true market value. Whereis if the stock opens at $50 and that is fair value for the stock, should the company grow, and the stock hit $100/share, you would have doubled your money. In the first example......
Cheers and happy investing!
CRITTER
I noticed the posts on here about the Google segment on Nightline last night. After the show I spoke with a friend of mine who specializes in HIGH TECH investments, and like the economist on Nightline last night, he had similar recommendations.
Basically, Google has already dropped their IPO to under $100 for the basic reasons the economist discussed last night.
Should Google stock open in the $100 range, it would be over-valued. What this means is Google would have to grow FASTER then the likes of EBAY, MSN, INTEL in their first 5 yrs to make up the ground for the over-valued stock. The huge risk here, is if their stock opens in the $100 range, it seems almost impossible for Google to sustain the pressure and grow as fast as MSN did back in the day. Those days are over!
With that said, it seems the best bet, regardless of Google's IPO or original stock price once it hits the NASDAQ, would be to wait it out for a few weeks, hoping the stock will drop abit, and level off once the market and economy cools off after all the GOOGLE IPO HYPE, thus bringing it down to a PRICE which is much closer to it's actual value and make growth much more attainable...
SEE if the stock opens at $100 and really is only worth $50, then they have a ways to go. if they don't grow EXTREMELY FAST, the stock will PLUMIT to a number much closer to its true market value. Whereis if the stock opens at $50 and that is fair value for the stock, should the company grow, and the stock hit $100/share, you would have doubled your money. In the first example......
Cheers and happy investing!
CRITTER