Bad News for You and Good News for Me

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Oct 19 2007
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First the bad news! You’re just inches away from having to pay the biggest quantum of fuel hike next year (I said next year because it would be silly for the Malaysia government to increase the rate this year), probably after general election. At the same time the government is just inches from announcing the prepared-memo that as much as the caring government would like to absorb the global oil increases, it can’t and the people need to brace themselves to become “smart consumers” (again). People need to change their mentality about subsidy and it’s better to start taking the bullet now than later, never mind that the 26-million populated nation is producing top-quality petroleum.

Oil Reaches $90 a barrelIf you haven’t read the news yet, you should know that oil prices surpassed $90 a barrel for the first time with light, sweet crude for November delivery hit $90.02 in electronic trading Thursday evening before returning to around $89.60. The buying spree by foreign investors as well as speculators sent the oil prices up worsen by weakening dollars. I won’t bet a penny that it won’t continues charging up above $90 a barrel. And before you curse me with my article yesterday which I told you to prepare for 90 cents hike, you’ve to understand my arguments why oil prices might spike to $90 in the first place. Predicting where the oil prices will go is one thing. Doing something about it in order not to inflate unnecessarily inflation is another thing, which is what the government is supposed to do. I’m sure the government can think of something creative to justify the coming fuel hike. They’re good at that and the people should “listen”, furthermore they voted the current government in with 90% majority, no?

Now the good news! Google Inc. (Nasdaq: GOOG, stock) had just released its third quarter results that surpassed analyst expectations and demonstrated why Google has emerged as Silicon Valley’s most prized company with a market value of about $200 billion after just nine years in business. Google might had surpassed Cisco Systems Inc. as Silicon Valley’s most valuable company but it still has some running to do in order to beat Microsoft Corporation.

Google Intraday ChartIn the third quarter (three months ended in September), Google earned $1.07 billion, or $3.38 per share – up from net income of $733.4 million, or $2.36 per share, at the same time last year. If not for the cost of awarding stock to its steadily expanding work force, Google said it would have earned $3.91 per share – easily beat the average estimate of $3.78 per share surveyed by Thomson Financial.

Revenue for the period totaled $4.23 billion, a 57 percent increase from $2.69 billion last year and after subtracting commissions paid to its thousands of advertising partners, Google’s revenue stood at $3.01 billion – about $70 million above the average analyst estimate. It simply means for every $10 bucks in revenue, the partners earned $3 bucks while Google earned the remaining $7 bucks – a 30:70 ratio of profit-sharing.
Google Stock Chart After-HoursAfter I decided to
change my plan on Google, I basically didn’t monitor the stock’s movement anymore as the resistance of $632 was breached with good volume. The stock ended up $6.00 to close at $639.62 in regular trading session. It added another $3.88 (or 0.61%) to $643.50 a share in after-hours trading, not a very good gap-up as I expected at least 1 percent surge. Can it gallop to meet its next hurdle, $700 per share? Slowly but surely!

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Great and Intelligent site. I was a registered investment advisor and spent time learning at the NYSE. i actually got to be with a trader on the floor! Keep up the good info. here!
Grace and Peace,

thanx for your kind feedback ed … how was the life as investment advisor back then? guess it was totally different to be on the floor with all the excitement …

cheers …

Hi stocktube :

Nice stock investing blog you have. You really captured the highlight of the trading this week about the price of crude oil spiking $90.00 a barrel.

Next week we would find out how BIDU, the search engine giant of China, fare against GOOG – which reported a great quarter but a bit overhang about the headcount growth as hiring continues in China & India.

Keep up the good work.

Yours Truly,

Tony Chai
a disabled stock options trader
My Options Trading Blog

thanx for your comment tony … all the best in your option trading …

cheers …

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