Rule #1 Numbers: Analysis of Rule #1, the Phil Town book

Today’s stock at Wallstrip is Google so we’ll take a look at it from a Rule 1 perspective. This is one company that we don’t even have to look at the Big 5 numbers to analyze: [begin analysis] All of the numbers are huge! [/end analysis] Of more interest for Google are the Margin of Safety and Sticker prices. The current stock price is approximately $460 and using the Rule 1 calculator I get a sticker price of $1600 and an MOS price of $800. Look at that Google is on sale!

Google is a perfect example of a Risky Biz stock. There’s very little history and a huge upside if it continues to go up, but there is a lot of room for it to come back down. GOOG is definitely not a Rule 1 stock, but one you would definitely want to consider if you’re looking for Risky Biz candidates.