What areas do well during a bad economy?

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katoved said:
If your price estimate is 150 or lower. Cut their PE in half and then some, at that PE ratio this stock would be incredibly undervalued. It won't happen. Im willing to bet you $1K. I did just sell my shares this morning though, not because I think its going to drop lower, but I wanted to make some bank on the pop this morning, and I'm buying a new car.
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Even though their stock is up a bit today I think you made a good decision. I'd like to make a bet with you, but can't afford it.

My prediction... Google will hit $200 by August 1st. Yeah you're right, $150 is a bit too low...

I'm guessing their drop in ad revenue will hurt their stock price pretty bad. Also, since it seems Yahoo/Microsoft are getting together I think they will start to suck away Goog's share price. Not to mention there are many other ad revenue options for publishers.

Google needs to wake up and try some new stuff. Most people are totally blind to adsense. Their ads have become the modern day 468x60 banner ad that we all saw in the 90's.

Any thoughts, or is this crazy talk? :rasta:
 


Jon said:
Regardless of a recession or not.. Know this. I will bet that the internet gets more ad spending even with people predicting it to level out during a recession. Why? Because it's a no brainer. Everything that businesses spend cash on for advertising in the offline world, such as TV, billboards, radio, newspapers, direct mail, can now be targeted online, plus with the internet marketing and internet advertising campaigns, you can take the same offline budget, and get WAY more bang for your advertising buck. The best part of all, is that the advertisers can track the campaign down to the actual point of sale or action. Unlike traditional offline advertising, the only real way to track conversions or actions was with a promo code the user would have to either remember or save, and many came with expiration dates.

So if you're looking for a specific market, just look at anything that's B2C or B2B that spends a lot online now in advertising, because as the recession moves closer, those industries will be pouring even more cash into the internet than they were before, when things were cheaper.
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Excellent point! and... I hope you're right. I bet this recession will destroy a lot of newspapers, magazines, etc...
 
katoved said:
If anyone plays in the stock markets. Take a look at AFCE, Pop Eye's Chicken and Biscuits, I recently made a decent chunk of change on it. Yahoo finance doesn't show a chart on it for some reason, so pull up quote history. It's at like a 5 year low, and the company seems to be turning around. Their stores are pretty nice, food is good, and when times get tough, people want to eat Fried Chicken and Biscuits (it seems). Anyone agree?
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USA Today ran a blurb on KFC pushing grilled chicken (which, surprisingly enough, they're running as "Kentucky Grilled Chicken"), saying that fried chicken is getting harder to sell from the health standpoint. They also said people are "less willing to splurge" than they used to be, but I tend to agree with you that in a hard economy people will be eating more comfort food. : )
 
I don't think demand for any online service/business will wane much, since a lot of people use ebay to build up paypal balances, which they then spend online without it going in or out of their bank account. When times get tough people start using cash, and in this recession it has an online version.
 
bobomonkey said:
The writing is on the wall....

Doubts Spread About Google's Q1 Earnings | Epicenter from Wired.com

Oh...and here's another...

Google Shares Fall - Forbes.com

Sell you're GOOG!
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From your Forbes article:

In a note to clients, UBS (nyse: UBS - news - people ) analyst Benjamin A. Schachter lowered his price target to $570 from $590.
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I've heard so many different takes on Google, from people saying its going to tank down to $200 or rise ahead of the crapper economy back to $700. Myself, I think it's going to stabilize around $490 or so until everything else normalizes, but if the Q1 report is bad enough it should dip down to be a really nice buy.
 
The recession will only stimulate internet commerce..

With rising gas prices more people will likely spend less time driving. This means they're at home on their computers. [ Order some shit we need? ]

Not to mention generally internet wholesale prices stomp local markets.

I know in my area I can generally find anything thats for sale in this town online, for roughly 35% cheaper. [exceptions on perishable products]
 
  • guns
  • iron doors
  • vegetables growing in NY
  • horses
  • artificial meal
  • aliens repellents
  • oxygen
  • memory erasing machines
  • super long acting drugs (let's say 10 years)
 
Drugs....infact anything related to health would be always good. Stock market is also a good option
 
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