Navellier Growth: your source for market-beating growth stocks

Louis Navellier:

This week’s Stock of the Week may sound very familiar. Google (GOOG) operates the most popular and powerful search engine on the Internet. Consider these mind-boggling facts: Google targets search results on more than 8 billion web pages, and its website attracts an audience of more than 80 million people! Its phenomenal success is due to its proprietary algorithm, which is used to rank search results and is more closely guarded than the gold in Fort Knox. Google generates revenue through ads that are targeted by keywords. In addition, it also sells ads across a network of more than 200,000 affiliated websites.

My Blue Chip Growth readers have made more than 45% profits in Google since October 2005, and the stock has earned my highest honors, an A Grade, in PortfolioGrader Pro for many months. But all good things must come to an end–sometime. I have noticed some signs that Google’s red-hot pace may finally be starting to cool—in its fourth quarter, it earned $3.79 per share, which was 2% lower than analysts expected. Its "paid clicks" and sales growth are slowing rapidly, and there is a sneaking suspicion that the company is increasingly vulnerable to economic slowdown, especially consumer spending, which is why it is cooling off. However, many analysts have come out and defended Google by reiterating their bullish forecasts.

I’m sticking with Google for now, but I’m also keeping my eye on its future prospects. The fact of the matter is Google is a legal monopoly, similar to Microsoft, but as its sales growth slows, the stock is settling down, just like Microsoft settled down several years ago. This stock is currently a "B," or Buy, in PortfolioGrader Pro.

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Richard White, 03.22.08:

I didn't get into Google in Oct of 05. I bought $15K worth on 8/20/07 and then, after it went up 10%, I bought $17.5K more on 10/2/07. To date I'm down over $6K overall (down 25% on the 10/2/07 purchase). When I joined Louis' site near the end of 2007, Google was an A rated, Conservative, Strong-Buy stock. Since then it's degraded to a B rated Buy. So, like Louis, I still waiting for something to happen to get me to sell. Just say "dump it" or lower it further, and I'm gone. Still, it's better than AAPL (Apple) where I invested $15K on 11/30/07 and am down some 33% or almost $5k. It's still an A rated, Strong-Buy stock by Louis. I believe it has gone from a "Conservative" to a "Moderately Aggressive" since then. Maybe the key is to sell anything that gets lowered in rating or increased in risk. Is this a good algorithm?

Bruno Ciaruffoli, 03.21.08:

I would like to know why you rated Google an A when it was 700$. It lost 40% since then. I would also like to know what people think of strong buys in October November for DRYS, EXM, AAPL and many others. I would appreciate an answer. Thank you.

Jim Blake, 03.21.08:

What affect does Google not getting band width for a mobile telephone system have on the stock into the future?

Jerry Linderman, 03.21.08:

Google was good! Visa (V) wasn't such a bad buy either!

Karen Chalfen, 03.20.08:

Yes, as a Blue Chip Growth subscriber, I had a terrific gain in GOOG. But it is all slipping away, and now is up only 8.6% from purchase. Recently, other top stocks have given up most of their gains before your "sell" recommendation. Will GOOG be another?

Mike, 03.20.08:

GOOG is a good company but its stock is toooo pricey for the average investor.... In todays world you have to take some risks to make big money and after searching and searching and searching I think I found my million dollar stock for a few pennies with a big profit potential.... TCHH If my small investment of a few hundred dollars can make it back to its 52 week high my pennies will turn into dollars....

Don Moore, 03.20.08:

This is great upgrade and it will help everyone be come BETTER stock picker so we can buy more stock

Paul Phillipps, 03.17.08:

I like the new site. Here's a suggestion that would help. Please date your comments, such as Google above. Is this from march 13 or March 7th, or when? Thanks

Paula, 03.14.08:

i am confused about google i did not see ln december when the stock hit 740 because the forecasters were saying it could go to 800/1000 how stupid i was it is not at what 4 something... you kept touting so i held hoping it would gain momentum but now i hear you saying no... ???? i am totally confused as to what i should have dona with google and do now? in fact all my stocks.. alot of them your recommendations biadu monsanto macdonalds sun power all down what should we do... i know you say buy bargains but what do we do with what we own and it is all our funds... which have taken a beating. we just sold a mutual commodity to purchase you recommendation to buy MKL it is confusing that your newsletters show gains an my portfolio shows losses what is the answer?

Luke Bradford, 03.13.08:

Thx Louis, I completely agree. I bought GOOG on your rec and I'm sitting on a very nice gain. Street estimates for 08 are coming down fast. Give us the word when to pull the plug, and thanks for the profits!!