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Little Secret in Making Money trading GOOGLE



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Oct 17 2007
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StockTube has been bashing Yahoo Inc. (Nasdaq: YHOO, stock) whenever the opportunity presents itself in favor of Google Inc. (Nasdaq: GOOG, stock). While you might see me as a mean-creature just short of sexually abuse both Jerry Yang and David Filo, in contrast my intention was for “Yahoo’s own good” *evil grin*. I simply can’t live in a world full of monopolization, not that I can put all the blames on the younger brother Google for its effectiveness and innovative products that makes elder Yahoo looks like a sicko good-for-nothing company.

You should know that consumers will never benefit from any type of monopolization doctrine although I know Warren Buffett will definitely argue with me (how he hoped PepsiCo Inc. never exists). And when Jerry Yang kicked Chairman Terry Semel to drive the company himself as CEO, stock price had fallen by 5 percent in the months since then. Google’s shares on the other hand soared by 20 percent during the same period.
Yahoo Stock After HoursTo cut long story short, revenue for the 3rd-Quarter period totalled $1.77 billion and after subtracting commissions paid to Yahoo’s advertising partners, revenue stood at $1.28 billion – nearly $40 million above the average analyst estimate, according to Thomson Financial. The company’s third-quarter results exceeded the average earnings estimate of 8 cents per share among analysts surveyed by Thomson Financial. Investors cheered the news and sent Yahoo’s stock price up by $2.39, or 8.9 percent, in after-hours trading
Google Stock After HoursHowever the Sunnyvale-based company’s announcement that it made $151.3 million during the three months ended in September 2007 is 5 percent less than its net income of $158.5 million in the same period last year. And this sent its rival Google Inc. stock price up by almost 2 percent in after-hours trading or a whopping $12.00 a share after the stock was trading in the red almost the whole Tuesday.

And with this article you should know by now how to make great money by knowing the earnings performance of Yahoo. Still have no idea huh? Well, if you care to search for my past profit on Google Inc. you should be able to identify and determine my trading method in the U.S. options. I “never” trade Yahoo’s stocks or its options. The reason was quite simple – it wasn’t a leader in online advertising market and hence it tends to disappoints everytime. The second reason was Yahoo Inc. will announce its’ earning prior to Google Inc. I’ve blogged about the concept of Yahoo’s Weakness is Google’s Gain and vice-versa.

Yahoo Sucks Buy GoogleAnd by knowing if Yahoo has done well in its quarter’s earning you can make good money by trading the opposite way of Google. Meaning if Yahoo sucks (which were the cases most of the time), then you better long Google Inc. preferably trading its option. Why option? Two reasons – Google’s option is cheaper than the stock and due to the power of leveraging. So there goes my little secret in making money trading Google Inc. Of course sometimes I entered based on support-resistance and price-volume reasons. I’m still waiting for Yahoo to announce that its’ YPN is available worldwide and when that happens you can be sure Google’s stock price will plunge in double-digits.

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