Monday, November 21, 2005

Turn around for GM

GM's stock price has been plummeting since late July 05. It has already bounced back from its 52 week low of 20 to 23.58, and yet it still remains significantly below its 50 and 200 day moving averages. Also, I believe the hammer sign on its candlestick graph is a bullish signal as it was earlier in late April 05 and early October 05. Chart
Graph from Yahoo Finance.

Sunday, November 20, 2005

TXN trading range

Texas Instruments price dropped significantly after its last earnings release, which provided a good buying opportunity under 28. Since then, TXN's share price has risen sharply back to 32. It still hasn't risen to its pre-release levels around 34. 34 appears to be the next level of resistance, and 36 appears to be a good target level above that as some analysts have stated.

How can eBay use Skype?

Since eBay acquired Skype for more than 2.5 billion dollars, how can they use Skype technology for their services? The combinations depend on the imaginations of the users of Skype and eBay. One possibility is eBay users posting links to their Skype account on their eBay listings. Skype's site has HTML code for its users to display on websites that allow people to click on links that will make Skype software call a certain user. Would a seller on eBay want to be bothered by VoIP calls about their multiple products for sale? For sellers of high priced items or barely selling any products on eBay, a Skype option would help them communicate exceptionally well with their customers.

Friday, November 18, 2005

P/E Ratio

Many of the stocks that have truly given investors amazing returns never had P/Es greater than 50. MSFT or Dell didn't have outrageous multiples; these companies delivered solid earnings over several years. This provided investors with larger returns than Google's recent gains. For this stocks ratio to go down to 20, it would have to earn $18 per share. This would mean it would have to earn around $5 billion dollars per year. So currently, the stock price reflects a company that is expected to earn this much and more. A stock at this valuation has a high downside risk with these expectations

Tuesday, November 08, 2005

How much can click fraud affect Google's stock price and earnings?

Google's stock price has risen from an IPO price of 85 to 395 dollars. Investors have bid up the price of this company since its earnings are growing at an incredible pace. Google's earnings are mainly based on its Adwords program for its own search engine and its Adsense program for third-party websites. In its Adsense program, Google gives 60 percent of the cost per click program to the website owner. Click fraud occurs when a website owner, some one else, or an automated program clicks on the advertisements to increase earnings. How much could click fraud end up increasing Google's earnings? Although Google states it combats click fraud, some sources say it can account up to 20 percent of clicks. Even if it accounts for five percent of earnings, earnings generated from click fraud could account for GOOG's soaring stock price. Independent investigators should see if click fraud can affect Google's earnings, especially considering the market has given it a 100 billion dollar market value.

Friday, November 04, 2005

Stock100.com

http://stock100.com/

http://stock100.com/plotForecast.asp?symbol=GOOG&history=200&future=30