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Thursday, July 21, 2005

Google Ahead of Earnings

Bernie Schaeffer has written an article about Google (GOOG). A great and interesting reading, indeed! He has some nice charts on the site to illustrate his story. The basic idea: everyone is very optimistic and there is no fear of negative report, therefore, Google is very vulnerable.

He shares basically the same fear that I have (read Today's Earnings: GOOG, MSFT).

Schaeffer on Charts: Google Ahead of Earnings
Schaeffer's Investment Research
Bernie Schaeffer
7/21/2005 8:50 AM ET
There is no fury like an investor scorned. Just take a look at Yahoo! (YHOO: sentiment, chart, options) and Intel (INTC: sentiment, chart, options) yesterday. Both companies reported earnings that were "in line" with the Street estimate, yet both got slammed - YHOO plunged 11.5 percent, while INTC got off relatively easy with a 4.6-percent drop.

Heading into GOOG's earnings report, options speculators have loaded up on call positions. The fact that call and put implieds are running neck and neck reflects very little fear of a negative report. In fact, I infer just the opposite - the dreaded and dangerous high expectations.

Not surprisingly, there has been a continued drop in the stock's Schaeffer's put/call open interest ratio (SOIR), which now sits at 0.59. While we don't yet have a full year's worth of data for GOOG's SOIR to calculate an annual percentile ranking, the current reading is only slightly above its all-time low of 0.52 and continues to hover in the lower quartile. Such an abundance of call positions ahead of the company's earnings report sets the expectation bar at a level that GOOG may be hard pressed to clear.
Read further:
Schaeffer's Investment Research: Schaeffer on Charts: Google Ahead of Earnings

See also:
Today's Earnings: GOOG, MSFT


Anonymous PENNY STOCKS said...

Google earnings roll on and on.

12/03/2012 03:21:00 PM  

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