Friday, October 20, 2006

GOOG Google, is it madness? Sell BA

Google up big on earnings. If a person just looks at the chart, without any legends, the chart is a strong buy, with a beautiful flat base and a touch of resistance at the old highs. At $175 billion in market cap, it is not a start up company and will have trouble maintaining its torrid growth rate. However, it is the market leader, and no company has found an answer to the Google business model. The path of least resistance is higher, I would say at least 20% higher from here.

Elsewhere my BA Boeing is called away at expiration. The call buyer did much better than I did (the call seller), but I will not sneeze at a very respectable low risk short-term profit.

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