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February 13, 2006

Google getting screwed , Mon., Feb. 13, 2006, 5:48 AM

A long time ago there was a trader/writer by the name of the Trader Wizard who explained that click fraud was a serious problem, which was a fundamental reason " among others " he was avoiding shares of Google. Few people listened.

This weekend Google is making headline stories in the major traditional media (particularly Barron's!) because of concerns over " drum roll please " "click fraud".

So the trashing of Google has begun in earnest. Media and Wall Street are joining forces to extend the amplitude of the price cycle. Why? Well the media likes to make the news and Wall Street figures they are smarter than Mom & Pop and the Fund managers on the Buy Side, so they trade the cycles while advising their clients to Buy and Hold.

Wall Street and Corporate America really do have the yachts. I see them in the big marinas of south Florida. It's a fact that Mom & Pop can no longer afford to get in.

So the rush to GOOG is over. The era of the triple-digit PE is over. Cramer must be desperate.

It's never too late to sell a stock that is headed lower, but the Daily RSI on GOOG shows how far the price has already fallen. So the weekend media stories are a little late as usual.


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Posted by Posted by Bill Cara on February 13, 2006 05:48:49 AM | Category: 45 Info Technology