GOOG: The Stock

Yesterday's closing price of Google was $256. During the day it reached
as high as $265. The price of $256 represents a Price to Earning ratio of
about 102.

Google is a great story but if you are planning to jump into Google stock at
this level and if you happen to be a small individual investor, our advice
would be to just avoid it! As analysts are saying, GOOG may reach 300$
very soon and of course it could come true and of course some people will
profit. But if you are a small investor, do not take that risk. A Price to
Earning ratio of more than 100 raises lot of expectation on Google.

Google is a great company but nothing is certain in this economy. Search
Engine is a great business but you can not be sure who will dominate the
scene in next 5 years [Read this article in MIT's magazine "Technology
Review" January 2005 issue" "Google is God: But for how long?"]. Then
there is this summer when trading activity is usually low. OPEC is meeting
on June 14th and most probably oil price will increase again as summer
heat goes up and people try to go on vacation.

So, the bottomline is throw your money into risk if you have enough
money and you do not mind loosing that part of your investment. I know
you are thinking that you are missing this excellent ride of Google. But if
the stock goes sideways or remain at a lower level than your purchase
price during the whole summer, it might cause lot of anxiety inside you.
Rather than doing that you would be better off buying some health or
energy or finance sector Exchange Traded Fund and holding that for a
few years or so.