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Google continues its slide on no news

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What do you do when a stock that you own is falling on no news? That is the case for Google Inc. (NASDAQ: GOOG) shares which closed down today $31.90 bottoming out at $632.07. This is down from it's recent high of $747.24, losing $115.17 or about 20%.

When it was going up there was plenty of good news and hoopla to embellish stories of it reaching $2000, but on the way down there has actually been good news too. I could rationalize all kinds of intriguing stories as to why this has occurred but the most obvious is that it got too expensive and traders started thinking it was time to take some profits.

There are also plenty of investment fund managers wanting to record earnings this year that sold off some of their holdings to make their advertised returns look prettier -- window dressing they call it.

From my perspective Google is a $550 to $600 dollar stock giving it full credit for forward earnings of say $20 per share. Last month I questioned why investors would pay next years price this year . I guess Google's recent vertical leap could only sustain itself so long before other investors started asking the same question.

To find potential opportunities and verify my track record, read Chasing Value or Serious Money.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.

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Last updated: November 08, 2009: 01:55 AM

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