GOOG

Last Net Change % Change Open Prev Close High Low Bid Ask Volume
277.27 11.27 4.24% 269.56 266.00 278.40 269.37 277.14 277.30 21,803,200

SchaeffersResearch.com - Daily Stock Market Sentiment & Contrarian Thinking: "Schaeffer's Daily Contrarian

Schaeffer's Daily Contrarian

"When everyone thinks alike, everyone is likely to be wrong."
~ Humphrey Neill, The Art of Contrary Thinking

The above quote has been reiterated numerous times in our publications because of its ability to succinctly capture the essence of contrarian thinking. While simple in theory, the task of capturing the prevailing sentiment can be as elusive as defining the boundaries of a cloud. The closer you get to it, the harder it is to see.(More)

Posted
5/31/2005 3:38 PM
Everybody's Talking 'Bout Google
CNN/Money
"Bowling for Google"
Published: 5/25/2005

Brief Summary:
The article looks at the prospects of Google (GOOG: sentiment, chart, options) hitting $300 a share and the stock's potential inclusion in the S&P 500. The usual items are included: valuation, price-to-earnings ratio (current and forward), and comparisons with Yahoo!.

Contrarian Takeaway:

There is no denying that GOOG has been on fire since going public last August. However, what was once a "wall of worry" constructed with analyst opinion and the negative media take is now positively skewed. The current analyst ratings show 16 "buy" ratings, four "hold" ratings, and zero "sell" ratings. The equity's short-interest ratio is a paltry 0.80, meaning that the number of shares sold short could be covered in less than one day of typical volume.

The speculation that GOOG will be added to the S&P 500 Index has fueled the most recent rally, and that decision will probably come about sooner rather than later, but that may be the final crescendo for the stock. The buying pressure that would occur with news that the stock was being added to the SPX could be the last big volume spike, given that a short-covering rally isn't going to occur. I am thinking that an announcement with this news might present the perfect shorting opportunity.

Rick Pendergraft (rpendergraft@sir-inc.com)