Long Google Again
On friday, Google briefly dropped below $300/share. I had a limit order in place at that price and so I am long Google again and feel very good about it.
I've placed another limit order in for the same number of shares at $275/share. Last fall, I bought Google during the downdraft and sold them when the market recovered in early 2009. I made a nice profit and wanted to take a pause and see how things were going for Google.
Since then Google has reported a decent fourth quarter and has been rationalizing its business and making cuts. Eric Schmidt says things are pretty bad out there and that's certainly true. But I think Google's business, balance sheet, and market position are as strong as they come and I'm happy to be back in the stock and will be buying more if it goes down significantly more.
I know that I should be selling puts at $275/share instead of placing limit orders at $275/share. I'd like to try that approach and will eventually get around to doing that.