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Originally Posted by GRock
Wanting to pick up more shares. Had bailed when the indicators said sale. The big difference with the previous dot com bubble is these company's are actually making money and have real reasonable multiples. Back in the late 90's the fed dropped interest rates to unreal market levels because of the Mexico Paso problems, Failed LA pension fund and I think a collapse hedge. Supply and demand. Low interest rates pushed money into stocks at unreal levels and the biggies could not get enough of the Dot Coms for the demand they had. A similar thing happened a few years before the 1921 stock market crash.
I own GOOG also and am afraid to check the indicators today but think it would say to sale but their valuation is so so low. Most all the analyst have 600 + price targets on GOOG. Going to hang in there unless I can't take the pain.
GRock
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Both of them are good picks. If the overall climate takes a diver then I consider dropping them --to buy again later.
GOOG is grossly undervalued and AAPL is not trusted. There is a lot of brouhaha about both of them and the bears are hard at work to get them down so they don't have to cover their shorts.
Whereas microsoft can only re-hash existing business via Vista (and most corporations, including ours don't even consider it unless 12 months have passed), the other businesses are not growing at all. I see the biggest growth potential with AAPL. No operating system has got so many admirers who don't even own it. There are tons of sites dedicated turning a PC into a desktop that mimicks OSX. AAPL looks like they are going (again) to re-invent not only the mobile phone, but also how we use desktop computers. Apple gave the world the graphical desktop (although pioneered at PARC research labs), the mouse, the clickwheel and now...? We've seen the iPhone and I reckon it is a good taster for the entire product line to follow.
GOOG is grossly undervalued. using the current analysts estimate the MOS is at over 800$!!! If I drop the growth to 20% I get a MOS in todays price range.
20% is sustainable over 10 years considering the current 180% growth rate. GOOG is risky biz because it is not established yet, but it's a hell of a good bet and profits from the .com paranoia. What people forget is that the .com stocks never posted a SINGLE PROFIT. Whereas GOOG rakes it in! They are in a very good position in becoming the most dominant advertising/media company this decade.
I'd hang on to both for a bit but sell on an over 7% drop.