It's official -- I'm done with Yahoo. I made over 20% since late December 2006 with this stock and today I sold it. The reason: Price-to-Earnings ratio! Thanks to this nice stock price run up, the current PE is over 60 and the future looking PE is over 54. Those are the types of numbers I was using to say Google was overpriced! So I have to stay true to my logic and sell now. Plus, next week Google and Yahoo announce earning results. I see Google showing a big increase (30%+) while Yahoo gets by with 15%+. This means, with the PE ratios the same (actually Google is currently at 45!), Google is the better buy. But actually, for me, a PE of 45= is still too high and so I am selling and staying OUT! Is now a good time to buy Microsoft?
Friday, April 13, 2007
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