Thursday, April 3, 2008

Bookkeeping: Closing Google (GOOG) Position

Google (GOOG) is sort of in no man's land, both in its chart and in my portfolio. It is not rallying with nearly the same vigor as some of the other tech names, and I have had it as a minor position for a while down at 0.4%. With a slow down in the economy, and potential slowdown in advertising I don't have enough confidence to really build a meaningful position here. This does not mean it cannot go up, but if I clear out some clutter in the portfolio to keep the # of names from growing too high, this is one name to go.

The valuation is pretty compelling but I'd rather add to an Apple (AAPL) rather than Google as a "tech exposure". So out Google will go. I have never had this as a large position and exit with a small loss of about $2.2K. Considering the carnage since the New Year that amount is more than ok. Thankfully I took profits along the way and did not have large exposure to the massive downturn. Google is building a nice base, from which at some point it should make a very large move off of - but it should be acting better than it is with the return to speculative stock buying. So that time for a "sustained" (not dead cat) rally could be down the road a bit.

I am closing my position in Google here in the $450s, and have held this name since Aug 6. If we can see a meaningful move up through $500, I would get more excited for the potential for a sustained move. Google is just flopping around like a fish out of water at this time... maybe telegraphing more negative news to come.

Long Apple in fund; no personal position

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