Google execs dump stock fortune

I like the premium Wall Street put on technology in the dotcom boom days... Remember NasDAQ? The bubble eventually bursts. What keeps companies like MS solid and in the black is the fact that they have a product and assets.

From my own perspective, things are worth what someone will pay for them. Nothing more, nothing less. Anything else is purely speculative.

 

Is Google a fund? //// Google is facing a hurdle other companies would love to confront: how to get better returns from investing its cash hoard without being regulated as a mutual fund.

Companies whose securities comprise more than 40 percent of their assets can fall under restrictions that govern the mutual fund industry. So Google, which has increased its cash and securities to almost $10 billion since its 2004 initial public offering, asked the U.S. Securities and Exchange Commission late last month for an exemption.

At stake for Mountain View, California-based Google is the chance to move more of its money from low-yielding U.S. government bonds to investment-grade municipal and corporate debt. That would help Google match the investment returns of rivals such as Microsoft Corp., which obtained a similar exemption in 1988. (ex Bloomberg)

 

While I agree that Goog is way overvalued. A stock worth is not calculated by assets only, there are many other reasons for a stock to be where it is.

As a webmaster you should know that a site value is not calculated by its "assets" but by it's expected earning over X amount of time.

 

But in the end, it is only worth what someone will pay for it.

 

Exactly!!! That's why trading is as much about psychology as it is about market knowledge or technical analyssis.

 

Microsoft has been highly overvalued for 20 years. No sane
investor would touch their multiples. But for some strange reason
people keep making money owning MS stock.

Same with Google. I wouldn't buy their stock, but what makes
a good investment is not what I would do, but what the crowd
does, and the crowd is betting on Google.

 

I am long google (have been for quite some time) and while I dont like alot of googles policies the stock is a winner. I expect it to eclipse 500 within 4-6 months and maybe even 600 by mid 2007. The issue of clickfraud and advertisers still looms over google but there havn't been any signifigant findings. Most reports of clicfraud are done by small agencies with little clout on wallstreet or the government.

Execs have every right to sell stock. When you consider how much money they have it almsot makes sense that they would liquidate. These guys have millions of shares valued at hundreds of dollars a piece. That is nuts. Even liquidating 5 million shares for a net gain of 1.7 billion is still a small percentage of the total number of shares the major insiders hold.

 

I read the word 'Billion' just one too many fricken times!

jesus those guys and even their chief officers are loaaaaaaaded!

 

I guess that is the whole point here. They can't harvest their
wealth unless they sell some stock. That's how BGates gets
his spending money, why not Google's principals?

 

I'd be cashing out too. I dont know why so many people watch these high profile stocks when there is so much to be made watching the technicals on midcap stocks.

 

As far as I am concerned, clickfraud is a non-issue. It is just
part of the cost of advertising on the internet. When you
calculate
your success rate at the end of the day that success rate is
conversions.
Conversion rate will be lower because of clickfraud, but your decision
to buy some more ads tomorrow depends on how much money
you made today, including the clickfraud.
If it makes business sense you buy some more ads, if not
you don't.

I imagine that some businesses will not find buying ads on
Google profitable
because of clickfraud, and that hurts Google.
Others will make a ton of money despite the bad clicks.

But the fact that bad things happen won't keep Google or their
advertisers from making money.