Sunday, July 1, 2012

"If you get indigestion when you look at your IRA account totals, then maybe you just need to "GOOGLE IT", (symbol GOOG)", to settle your stomach"

Dow Jones Industrial Average 12,800 (UP) Week ending June 29th

 "The old days??"
The great thing about writing a stock blog when you are not associated with any particular news organization or company is that you have the leeway to write anything you want anytime you want and give your own opinion without any political or other influences on it. 

Thank you Blogger, an invention of Google, to allow individuals such freedom of speech.  

So, just from a kind of random common sense survey, I went into my 401K plan to see what had done well since January 1st, 2012 to the half way mark. What I found was that all the Large Cap funds had done best and Capital Appreciation funds had done the second best.

So being a regular Sherlock Holmes, I decided to look at the largest holdings in these funds and it turned out to be Google (Symbol GOOG) and Apple (Symbol APPL) in every case.

I know that most of us don't think we can afford $580.00 per share for a stock in their portfolio but Google Inc. Class A (Symbol GOOG, $580.07) may be a must have for your IRA account. So you buy 5 or 10 shares. In your 401K account you may want to pick out the large cap fund that holds the largest percentage of Google stock in it.

So, lets take a look at the sexy numbers for this amazing stock!
How about: projected earnings per share for 2012 of $43.25 per share and projecting for 2013  $50.55 per share. $100 stocks usually earn about $4.00 or $5.00 per share , so this shows you how incredibly CHEAP this sock is at $580.00. This stock could trade at $1000. dollars per share. The PEG ratio on the stock is 0.71.

How about: Gross Operating margins of 64.82%, kind of like the old "glory days" of Intel, in their hayday. The Net Profit margins are running 27.13%.

5 year earnings growth of 24.77% with the PE on the stock at only 13.48.

How about: 5 year Sales growth of 25.63% , or a 3 year total return of 42%. What about the fact that they just came out with a a 7" Tablet device to compete with the Nook for $199. Or what about the fact that they purchased Motorola Mobility Solutions along with their whole portfolio of mobile patents. How about the potential value of Google's software applications?

How about: A Current Ratio of 5.84 to 1.

How about:  Cash and Short Term investments of 49,316,000,000 on the balance sheet.

Well I hope I have your attention now! Google hires people who are smart and have ability.

They have a little thing to keep employees happy besides the stock. They allow employees 20% of their work time to work on their own creative individual projects. What a great idea. And here's the guys that put it all together from Google's company page!

  "Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they had built a search engine (initially called BackRub) that used links to determine the importance of a individual webpages"
Best of luck investing in the second half of the year. Don't buy stupid stocks, but smart ones! (Like GOOGLE!)


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