| Look no further than the recent move the stock of | | | | Depending on your time horizons, those $500 and |
| Google (GOOG:NASDAQ) made over the time period | | | | $600, maybe even the $2000 targets may be hit, but |
| ranging Dec 2005 to the end of Jan 2006. | | | | not anytime soon as Joe Sixpack would think. So was |
| With GOOG trading in the $400 and in a nice uptrend, | | | | it a good idea to buy the stock based upon all the |
| the greed starting setting in. CNBC brought in analysts | | | | positive news? No. |
| banging their drums, $450 one said, $500 said another. | | | | The opposite also holds true, GOOG stock started to |
| Each analyst coming on had to out-do the previous | | | | pull back following all the lofty targets, The stock |
| one with another amazing prediction based upon | | | | dropped from $475 to $337 a few weeks later, |
| voodoo valuation methods of the moment from | | | | accompanied by a slew of negative comments from |
| respected firms like PipperJaffray. | | | | news sources and advisories that the stock had |
| Not to be outdone, an analyst from a semi-reputable | | | | moved too far too soon. |
| firm named Caris & Co wanted some of this | | | | If you recall the title of this article and applied the |
| limelight, he came on and blew everybody out the | | | | adage, buy when everybody is selling, once again, you |
| water with a lofty target of $2000 per share. | | | | would be ahead. At the peak of the negativity when |
| Joe Sixpack sitting by his TV watching CNBC was | | | | some big names where insisting GOOG is overvalued, |
| simply amazed by this, Joe could buy GOOG today at | | | | something very predictable happened, the stock turned |
| $420 and it would go to $2000 soon because it is on | | | | around and started heading upwards. |
| CNBC, so it must be true. | | | | By being able to read the signs that are clearly visible, |
| GOOG went on to hit $475 on Jan 11 2006 as small | | | | the smart investor is able to act against the crowd |
| investor flocked into the stock based upon these | | | | and profit from such situations. Remember, it is always |
| wonderful official price targets, but was this a good | | | | darkest before dawn, look for the signs, they are all |
| idea? | | | | around you, profit from them! |