First, here is an article by former Google employee Ron Garret on why you shouldn’t buy Google stock. His argument can be used for nearly any stock these days. Paraphrased it is: why buy stock in a company that has no chance of being bought out and has no dividend? As seasoned traders often say, stocks are just pieces of paper. Of course that doesn’t mean you can’t a make a lot of money trading paper.

Now, why would I say “The Thrill is Gone”? While away on vacation last week SIRI (Sirius Satellite Radio) slipped some more. An analyst upgrade gave the stock a little boost, but it wasn’t enough to pull it out of decline. It’s going to be this way for a while with this company. Any good news, any turn around in the stock price, will just give investors like me a chance to get out on a (slightly) good note.

Today I’ve put in an order to sell my 210 shares of SIRI. And I’m not talking about that stop-order I had in there for $10. The current price is ~$4.75. I feel there may be a little bit of a bounce today and so set my limit at $4.85. That extra $21 if it comes will help cover the transaction costs of the trade. Of course if the stock just slips lower, I’ll be out some more scratch. I’m of a mind to cash out at just over market price just so I can forget about the stock sooner.

Long term, I feel the same way about the company as I did before. Sirius manages a lot of good audio talent that will make them money down the line somehow. However, the long term seems longer away than it did just a few months ago. Short term, I see this stock hitting $3.50 before it hits $6 again, with potential to creep even lower. The plan is to disengage from the stock and hope that it sinks lower so I might be able to play it again someday.

I also cashed out my 15 shares of AMD last week at $40. This seems like a good move since the stock is now trading at ~$35.60. My gain on AMD helped cover my SIRI losses a bit, but I need a new winner to put my money into to feel good about myself again. 😉 I’ve been looking at YHOO which is down below $31 now. The stock dipped below $30 last Friday and has had a little rally since then. I think the company is severely undervalued (PE of 24) with a lot of potential for growth. On the other hand there was that click-fraud news with Google last week which may bleed over into other internet stocks if it develops into more.

So that’s where I stand. I’ll be sure to keep y’all informed and let you know where my goes. On Thursday, I’ll be changing things up a bit with a review of Jim Cramer’s book Real Money. Enjoy the week.

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I commented on this on my blog as well. I found that this ex-employee had somewhat of a bone to pick as well as what you commented on.

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Hmm…interesting. Sounds like Paul hit the nail on the head…this was probably a disgruntled ex-employee. I wonder if/when Google will offer a dividend? I suspect it would be quite high.

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yup, just another disgrunteled employee probably

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