GOOG = CMGI except GOOG is a $5 stock whereas CMGI is @ about $1 but used 2 trade for hundreds. Is GOOG toast?

Answer 1

Nah...Google's not worth what it's selling for, but it's worth much more than $5. This is a real company with real earnings.

IMHO, CMGI was a viable company too. They just got too aggressive with acquisitions at high prices, and that debt is what wore them out. Google's not playing that game. Yet.

Answer 2

Yes, Google,as we know it is toast.
I can get long-winded here, but I will try to keep it short and sweet.
1. Any tech company trading at 74 times earnings is a bad joke. Haven't we learned anything yet?
2. The way they make their money (pay-per-click...) is a proven fraud and lawsuits keep popping up all over the place.
3. Their earnings level is absolutely unsustainable because the US economy is sliding into the tank. They don't have a lot of baidu.coms to sell for a massive profit just laying around the office any more.
4. They are concentrating on having all our software functions web-based. That's fine and dandy but what company wants to put their financial spreadsheets online for anyone to steal? Microsoft has it right. Keep MY private info on MY personal computer.
5. Microsoft is spending billions to usurp the business model of Google. They will do it the way the Japanese got a share of the US auto market- sell cheap, cheap, cheap. They will tear Google up, then eat their lunch and then steal their sister's lunch money, too. Sergei Brin has a big mouth and Bill Gates doesn't like it too much- and you know what he did to Jobs and his fat mouth, remember?

Wanna make a load of money? Okay, assume that Google will trade at 24 times earnings instead of 74. That means that if you take January 07 near-the-money Puts on Goog, (say at $400/share...), you can pick those up now for about $29.50. Sell them back into the market at the end of November for about $90.00, for a sizable gain of 316%. Or just sell it short when it starts to buckle.

Google will close on November 27th at $273.58. That means it will lose over a third of its value from now until then- at least. I frankly believe I am being conservative in these estimates.
Best of luck to you!

Answer 3

Anything around $1 or less can go off the board so fast you won't see a light blink, and I saw one of those ugly bitches do it, a California Bank. I feel much better if someone thinks the stock is worth $ 5. SUNW could come back, if they ever make any money.