Friday, October 24, 2008

Stock market

I wish I had money to invest right now. The way the stock market has tanked there are some very good buys right now. I would argue Google, Apple, and my beloved Coke are all reasonably priced for the long haul.
The one stock that is downright a steal right now is ebay. The stock is trading with a P/E of under 10.
Google is down because online ad revenue is expected to be down. It may be, but as the economy goes through a recession and subsequent recovery marketing companies are going to be even more cautious in how they spend. They will be looking for ways to target their audience and Google has the ability to reach a specific customer.
Coke might be getting hurt by the economy and strengthening dollar (the profits overseas won't be as high when translated into dollars) but is there any reason for Coke be trading at $41 when it was at $65 earlier in the year?
Apple is over 50% down from its high. This is probably the riskiest investment of the four.
Right now:
Apple $91.13
ebay $14.31
Google $327.24
Coke $41.12
We'll see where they go in six months.

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