GOOGLE ready to blast off into the space of $700

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Oct 11 2007
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I was watching two screens in front of me yesterday with different feeling. On one screen I was monitoring the stocks movement of Google Inc. – smiling from left to right. On the other screen I was watching with mixed-feeling the model-like so-claimed Malaysian first astronaut (or tourist) sitting anxiously with his left arm bearing the Malaysia flag obviously positioned and targeted to the onboard camera. There was this fanatic announcement – “that’s it, that’s the Malaysia flag … the Jalur Gemilang” (refering to the flag stitched on the spacesuit) and everyone went hysterically.

Heck, what is so great and proud about being a space tourist? I’m sure the “Spaceflight Participant” Sheikh Muszaphar Shukor didn’t bring a single made-in-Malaysia thing onboard the spaceship, not even his underwear *sorry for the word* as I believe the Russian has their own version and type of underwear for the space journey. So why claim victory when in fact it was a tradeoff for the Russian jet fighters deal to send a tourist up into the space? As long as you’ve $30 million you can book a seat to the space. It’s not a big secret that space exploration has taken another level into tourism to earn some revenue.

Google Stock ChartBack to Google’s story, someone asked me if Google Inc. stock could reach $700 a share by end of 2008. Looking at how Google’s stock blasted itself into the new space frontier of $625 a share after the closing on Wednesday, this stock might reach $700 sooner than that (the stock rose another $5.00 to $630 a share during after hours trading). Google share is a different beast, it didn’t and do not intend to release any earnings estimate for investors. Its search engine captured about 70% of the market. It’s getting mature and repeatitively humiliate investors who claimed the stock is too expensive. Its brand is just too powerful. It’s one of the handful stocks with 30% growth.

My crazy buddy Jim Cramer agreed with me. He even asked you to ignore the financial advice from anyone who doesn’t recommend Google. Cramer raised his target price to $750 a share – added the figure is an unequivocal lowball estimate. He justified that if Google earns $20 a share next year and continues its trend of 30% growth, it should hit $750. Cramer’s non-conservative but rational price estimate would be $900 *ouch*.

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