Piper Jaffray raised is 12 month price target from 445 to 600 for Google this morning. Wow. I personally feel Google is overvalued as it is. But Wall Street analysts keep raising and raising its price targets. Insiders obviously feel the same way. They have been dumping millions of shares onto the market. But for some reason, NOBODY cares. I’m holding this for the ride up, but will be quick to sell once I start to see a decline. This is one company that is definitely overvaluved, and will NOT continue to grow at the pace that everyone thinks it will.

The story on this stock is insane. IPO’s at $85 and jsut never looks back. I’m not going to lie, I initially thought it was overpriced. But when the stock was trading at around $220, I took the opportunity to buy some January 2007 $280 calls. I decided to buy into the hype.

And you know what? So far its paid off. Yesterday Google closed at 410.65. Since my initial investment on April 25th, I have had a return of 342% on my money. Not bad for 7 months huh? And the best part, is it gets even better.

This morning, Citigroup raised its price target from $430 to $490, slightly below other analysts’ opinions of $500. But here’s what I like even more than that. The possibility of Google being added not only to the Nasdaq 100, but also to the S&P 500. This would send the stock up TREMENDOUSLY. The reason? This would open up the market to institutions that are only limited to certain indexes. In fact, the Nasdaq anouncement could come out as early as this weekend. This is great short term news.

Yes I think Google is overpriced. But I’ve seen this before. And when the market prices it higher, all you can do is go with the flow and make some cash.