Stocks post biggest gain in 5 years; Google buys DoubleClick

Well, Google didn't buy Digg, but was approved to purchase DoubleClick for 3.1 Billion dollars. You may have not heard about this deal because it was announced 11 months ago. The reason it took so long as that it needed to be approved by United States regulators (which happened in December) and the European Union, which just happened today. What will DoubleClick do to help Google? According to Google Chief Executive Eric Schmidt, "combining with DoubleClick would allow Google to more quickly bring to market advances in technology and infrastructure that would dramatically improve digital media and better target advertising to users" (AP). In simpler words, it will provide better features for those who use Google Ad's to make profit. However, there is some bad news for DoubleClick employers. Reuters reported that Google will make an unspecified number of job cuts from the 1,500 current DoubleClick employers (Reuters).

So what should you do with Google now? Well, my plan for shorting Google for the rest of the week backfired. I looked like a genius after Monday, but with DoubleClick under Google's (GOOG) belt, Google would have skyrocketed even without the Fed's Credit plan. What I think you should do is buy Google now, or just get rid of Google. They needed something to rebound from their tumble. Google's high was 741.79 on November 6th 2007. It has been falling ever since- its low of 413.84 was yesterday (March 10th, 2008). Google reports earnings April 17th, 2008. I think Google will beat earnings, as do analysts according to Yahoo. Its hard to say what Google is going to do between now and April 17th. If you are a relatively young investor, I would buy now. If you are older, say over the age of 30, wait until the 2nd week of April to buy Google.

In another news, Stocks posted their biggest gain in 5 years. The reason is mostly due to the Feds credit plan. The Federal Reserve plans to pump $200 billion into the financial markets to help ease the strain from the credit crisis (AP). The Dow Jones industrial average went up 416.66 points at the 12,156.81 level. That's the index's biggest one-day point gain since July 24, 2002 (AP).

Will Google really buy Digg?

There have been claims that Microsoft and Google are in a bidding war over Digg. However, Digg's company blog claims otherwise (http://blog.digg.com/). If Google happens to buy Digg, there are chances their stock will rebound. However, I personally believe that Google will dip to about 360. Why?

1. The Pentagons decision to ban Google Earth from video mapping bases.
2. One of Google's director and their VP selling shares. The VP, Shona L. Brown, sold 583 shares between $472.16 to $472.35 apiece (AP).

A director, John L. Doerr, reported he sold 32,650 shares Monday between $455 to $469.25 apiece (AP).

There is a reason people inside the company are selling their shares. What I would do? Short Google (GOOG) this week. On Friday, cover. If the stock gets low enough, I think it might be a good idea to buy. I'll let you know what I think as the week goes on.

~Alake Kashyap

Welcome to stock lock and drop it

Hey everyone. As you may have guessed this blog is about my opinion on the stock market and what I think are stocks to buy and sell. The address "stock lock and drop it" comes from the song "pop lock and drop it." I think it fits well because lock can be substituted for holding on to a stock, and drop can refer to selling a stock.

Look for a new post soon.

- Alake