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January 31, 2006

Dead and don't yet know it, Tues., Jan. 31, 2006, 5:02 PM

Check for a pulse. The following Internet industry stocks are dead and don't yet know it. Less than an hour ago, Google management reported terrific revenue and earnings growth, and then proceeded to watch traders trash their GOOG stock -18 pct, which if you are counting is about $73.

That's right... $73 off the top. At least for now.

I won't bore you by recalculating the billions of dollars lost in one stock in less than one hour. But, in case you are wondering, the game is called: "There ain't no perfection."

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Posted by Posted by Bill Cara on January 31, 2006 05:02:44 PM | Category: 45 Info Technology

Discourse

I wonder if this will shift things into the fear part of the cycle. TXN breaking the uptrend started in 2003 today is not good.

Posted by: ClaudeG [TypeKey Profile Page] at January 31, 2006 5:34 PM [link]

Despite what the street will inevitably see as an earnings miss (a miss is a miss is a miss etc.) from the misconceived idea of a perfect company, GOOG's earning fundamentals beat the street's estimates by 5 cents (1.81 vs. 1.76) before the unexpected rise in its tax bracket (from 31% to 40%). So despite the sell-off, it seems the fundamentals of the business are still valid and strongly growing, and thus a whole-sale write off of the net sector appears to be premature. Certainly the short-term will prove to be trying, but I think the patient investor could be rewarded with abnormal returns.

Posted by: A.Berk [TypeKey Profile Page] at January 31, 2006 6:47 PM [link]