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Old 08-23-2006, 11:40 AM
alvis alvis is offline
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Google's issue like any hot stock is that earnings can't grow at a high rate forever. Eventually it's price earnings ratio (at 55 now) will settle in between 20 and 35 and they will have to increase earnings to increase price.

If I was an executive holding shares in the company while it's at it's likely highest P/E, I'd sell some now and when the market settles down, I'd buy back in or excercise some options. -- This message may have been cut off and the rest will only be shown to members. To become a member, click here --
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  #11  
Old 08-23-2006, 11:40 AM
alvis alvis is offline
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Google's issue like any hot stock is that earnings can't grow at a high rate forever. Eventually it's price earnings ratio (at 55 now) will settle in between 20 and 35 and they will have to increase earnings to increase price.

If I was an executive holding shares in the company while it's at it's likely highest P/E, I'd sell some now and when the market settles down, I'd buy back in or excercise some options. -- This message may have been cut off and the rest will only be shown to members. To become a member, click here --
Reply With Quote