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.

If 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.

In 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.
After 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!

Other Articles That May Interest You …

• Change in plan for Google, going for “Top Greed”
• Fuel Price Hike of 90 cents to RM2.82 a liter next year?
• Little Secret in Making Money trading GOOGLE
• Oil price hike – Badawi’s greatest Economic Challenge

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October 19th, 2007 by financetwitter

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