Thursday, April 17, 2008

Google Earnings

We all know that Merrill and Citi will have lousy quarters when they report in next 48 hrs. The more interesting earnings report will be, however, from Google. comScore data suggests that click growth slowed down dramatically last quarter. Bulls say that Google has tweaked its algo so that the yields have gone up, so there will be no pressure on revenue. But analysts always have lofty expectations from Google, so even a small miss can be penalized heavily.

SKF is still at breakeven, after having been up more than 10% Tuesday when Wachovia announced its capital raise. That was indeed my target. So, why didnt I sell? As I had learnt two years back with Motorola, the more important decision is not buying but selling. Selling when the target price is hit, or selling at a loss, requires great discipline, especially with these speculative positions. There are all the books and experts on the buying decision, but hardly anyone talks about when to sell.

Anyways, ML and Citi report in next 48 hrs. So lets see. I dont think there is much downside left in banks - they have already been pummeled.

I think oil prices are going into dangerous territory, especially for countries like India. Commodities have risen too fast. Ultrashort Materials (SMN) is something to keep a close eye on.

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