Discussion in 'Money & Investing' started by softwarewiz, Oct 19, 2005.

  1. softwarewiz

    softwarewiz Registered Member

    Google is really an amazing company. Ever since they opened their doors (with a garage door opener - true story - start up was in a garage after plans made by two guys sharing a dorm room), they have come up with some of the weirdest, wildest, and best stuff around.

    So I thought they deserved their own thread on business news just about Google. Now I could give you the latest, but I'll start this with a couple of interesting facts which you may or may not know.

    1. Why did they call it Google? I don't know, but a "googol" is 1 followed by 100 zeros.

    2. The new stock issue is for 14,159,265 shares, which is exactly the digits that come after the decimal point in the value of pi.

    3. And this is a news item quoted from an internet source

    "The love some people have for computers programs, Internet web pages or other IT fields can lead to the weirdest things. How else could you explain that a new-born has been baptized... Google?

    And still, although it sounds like a joke, we assure you the news is as real as possible, and the parents are as proud as it gets. Speaking of parents, the happy father, Walid Elias Kai, is a Ph.D. candidate in Search Marketing. Perhaps somebody should have told the gentleman in question that there’s a difference between “professional deformation” and ridiculosity.

    Mr. Kai is a Lebanese who lives in Kalmar together with his Swedish wife Carol, who gave birth to Oliver Google Kai on September 12.

    The proud father talked on a blog about the happy moment when he decided to baptize his son Google; he also said that his wife was thrilled about the idea. Most of his friends didn’t take him seriously, and they even made assumptions on the names of the family’s future kids, the most appreciated version being Yahoo.

    Still, the joke was suddenly over when Kai Senior got to the Office of Population Affairs and stated his child’s name: Oliver Google Kai."

    IMO, that kid better learn to fight early on before he hits junior high :)

  2. Mirage

    Mirage Administrator Staff Member V.I.P.

    I knew about the "googol" thing. The stock share number is interesting.

    It seems Google is one of the biggest topics of conversation these days.

    What I find interesting is that most of the internet superpowers are websites that have branded a term that was otherwise unknown:

    Microsoft (Play on words)
    Amazon (has nothing to do with the jungle, so it counts as branding)
    Apple (kind of)

    You don't see any names in that list that you could really guess what the company did based on what their name is.
  3. MenInTights

    MenInTights not a plastic bag

    Wanna see something funny? There's analyst on the front page of marketwatch that says a fair price for GOOG is $30.

    He also says that ebay has a monopoly and is untouchable and GOOG has to worry about competitors. lol.

    He's using multiples based on Free Cash Flow and Earning %. I understand what he says, but he makes no concession for future growth of GOOG. I agree that 90 is a big P/E ratio for any company. Bit come on, as long as they continue to hit homeruns with their products, a premium will be applied.
    (On a side note, its worth seeing the video just because Bambi Fransico did the interview **smoking hot**)
  4. Roland_Jenkins

    Roland_Jenkins Registered Member

    I did a google and this is what I came up with.

  5. MenInTights

    MenInTights not a plastic bag

    I'm glad nobody picked [SYMBOL]GOOG[/SYMBOL] in the stock contest. They announced earnings after hours and blew away expectations. The stock closed at 3.03 and is trading AH at 330+.
  6. Roland_Jenkins

    Roland_Jenkins Registered Member

    IMO most "stock analysis" have a self serving agenda. Not that there is anything wrong with that :)
  7. MenInTights

    MenInTights not a plastic bag

    You know that dude's gonna be hiding under his desk tomorrow after Google posted a $1.51/share for this quater. lol.
  8. Mirage

    Mirage Administrator Staff Member V.I.P.

    Bad call! :D

    There have been a lot of people saying Google stock is inflated. They will probably still say this even now. I think the price is a fair reflection of Google's value. One thing to be worried about is that Google seems to be doing so well with everything they have been doing, almost too well. As soon as some bad press comes out that creates a stir in the perfect company that is Google, the stock will not be one I want to be involved with. It could go down fast due to the fact that I do believe a lot of the stock's value actually IS based on the hype of future projects. If they don't follow through with these, then there will be problems ahead.
  9. softwarewiz

    softwarewiz Registered Member

    I hate to say it, but I think Google is headed for a fall too - not right now, but over the next year. They are trying to do too much too soon and have forgotten what they do best - search! Yeah, some of the innovations are search-related, but they're getting all tied up with blogs and videos and trying to buy a piece of AOL for the video basically (I could go on and on, but I won't).

    What made them so popular was their simplicity .... remember we already had complicated portals like MSN and Yahoo! and people liked Google better! But the more Google tries to be everything to everybody, I think the less likely it is to succeed.

    Plus, their execs have taken an awful lot of money out of the company since the initial IPO. I know they need to be rewarded, etc., but the amount that all have taken out over the last year is a little bit on the "iffy" side, IMHO, and no investor likes to see that I think (or at least so my reading tells me).

    I would hate to see Google disappear and its uniqueness and quirkiness gone from the scene ... they were a breathe of fresh air and I just squirm when I see another "new" product they've come out with or a new alliance that you know is going to lead to more development. They need to get everything working right before forging too fast ahead ... BTW, a Google dance is underway, so if your page ranks or organic positions drop/change .... that's probably why :-/

    Spence, Girls/women called Bambi scare me :cool:
  10. MenInTights

    MenInTights not a plastic bag

    1) Women named Bambi scare you? Are you insane?!? I would run through a busy street to get to the other side just to meet a woman named Bambi.

    2) The insider sells you pointed out for Google is a keen observation for someone just starting out in stocks:
    Insider Sells:
    8M shares on a 270M float. Most of those are options, which dilute the share pool. They also shelved(new stock) 14M stock earlier this year(why did they NEED this offering?). In simple terms, your GOOG is worth 10% less that it should be becuase of these 2 actions. (8+14=22M additional shares on top of 248M, a little under 10%).

    I explained somewhere earlier that I am on the fence on GOOG's price. I tend to lean toward further appreciation just because they have incredible brand equity right now. Google can sell anything right now and people will break down the doors to by it. This is what I fond funny about the idea that ebay is a monopoly. Google could give them a run for their money in a very short time frame.

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