Tuesday, October 9, 2007

Bespoke Speaks: Google (GOOG) and Shanghai PE Ratio

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Bespoke Investment Group's blog is one of my favorites. Run over there and bookmark it - tons of interesting stuff to sift through, especially for a data lover like me.

They have 2 interesting articles I am bringing over here

1. Google (GOOG) is now the 12th largest US company by market cap @ $187 Billion and should pass Berkshire Hathaway (BRK) by 9:32 AM tomorrow. Johnson & Johnson (JNJ), Chevron (CVX), and Cisco Systems (CSCO) are all within spitting distance at under $200 Billion. It only looks like a matter of time (days?) before Google slides into spot #8 among all US companies - in 1 part amazing, on another level think if all the advertising on TV belonged to 2-3 companies, and 1 company was far and and away the most dominant - how much would it be worth? Apparently about $200 Billion and growing.

I am still curious if the slowdown in financial sector companies will dent Google's armor. That theory seems so far away and forgotten now....

2. Here is a historical graph of Shanghai's historical PE ratio, over the past decade. It shows that the current 50s range was actually surpassed around '00, when the index topped at 60. So the good news is there is more room to run historically. The bad news? After topping out around 60 the PE ratio dropped to below 20 by 2005 - could it happen again? Never say never. But until then, ride the wave.

Long Google in fund; no personal position

3 comments:

Moneymonk said...
This post has been removed by the author.
Moneymonk said...

$187 billion and only in business 3+ years.

Wow....almost scary. I am still kicking myself for not buying it when goog went public..

Goog is the Microsoft of the 80s.

These stocks come along once every 10 years! arrrrgh

well I do own QQQQ, that gotta help

TraderMark said...

well you can catch the next one, Baidu is the Google of China after all ;) too bad it was mid $100s 7 weeks ago and now over $300. Next market panic you can jump into that one. Market panics once every year at least if not twice.

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