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Speculation is rising high, google is expected to go public by the first of the year. It's said the company is worth about 3 - 5 billion dollars.

Would you buy Google stock?

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The big bet on Google, long term, is if they can maintain their lead despite Microsoft's big push into search technology. They want to create a leading search engine.

I'd be very cautious with Google for this reason. When Microsoft puts their mind (and money) to something - their likelihood of success is rather high.


There is no passion to be found playing small, in settling for a life
that is less than the one you are capable of living. - Mandela
If a company is "worth" "3 to 5 billion" why does it need money? That's what an IPO (Initial Public Offering) is for. It is to produce REAL money.

So the "3 to 5 billion" is more likely potential value. And what the current stockholders want is real money so that THEY can CASH IN!!!

INVEST YOURS TO MAKE THE "POTENTIAL" REAL. I'll use yours to make mine.

Clearly, I don't understand.

Later.

PEACE

Jim Chester

You are who you say you are. Your children are who you say you are.
quote:
Originally posted by James Wesley Chester:
If a company is "worth" "3 to 5 billion" why does it need money? That's what an IPO (Initial Public Offering) is for. It is to produce REAL money.

So the "3 to 5 billion" is more likely potential value. And what the current stockholders want is real money so that THEY can CASH IN!!!

INVEST YOURS TO MAKE THE "POTENTIAL" REAL. I'll use yours to make mine.

Clearly, I don't understand.

Later.

PEACE

Jim Chester

You are who you say you are. Your children are who you say you are.



I believe you are somewhat correct, the move would, in my opinion, be at least three fold, 1) to cash out, 2) to increase technology market share and other things that money can buy, that they can't now afford because the don't have cash, only worth, and 3) to spread the risk because they they no longer choose to bear all of the risks.

The 3 billion is a conservative look at their present situation, and the 5 billion is a more liberal look at their past performance, present condition and short term expectation (although still present value).

"I'll use your to make my potential real" is true, but the key to stock market investing isn't how much someone made off of you but how much you make off of someone else. Therefore, regardless of what they are making off of the deal do you believe you could make some money, and if so how much are you willing to risk?
quote:
Originally posted by ricardomath:
I'm afraid that, except for my monthly TIAA-CREF, I've never bought any stock in anything, so I doubt that i'll start now.





That is the case, with most people. However, the main reason for that is because most investors don't really know anything about the companies they are investing in. True, although we all use Google, we may not know as much as we want to know about the company from an investment standpoint, but you as an internet savvy individual know that Google is strong, therefore your education about their market share is actually an advantage. Now all you need is an understanding of their financial operations, etc...(the paper work).

If they do the online auction of some of the shares, I would strongly suggest you take a look at what is happening and get vertually involved. This way you know to kick yourself or kiss yourself in the future.
[QUOTE]Originally posted by MBM:
The big bet on Google, long term, is if they can maintain their lead despite Microsoft's big push into search technology. They want to create a leading search engine.

I'd be very cautious with Google for this reason. When Microsoft puts their mind (and money) to something - their likelihood of success is rather high.

QUOTE]

Don't be too cautious, if what you say is in the cards, there are a few possible outcomes, a) google beat microsoft, b) microsoft beats google and google goes down the drain broke, c) a merger takes place on the part of the search business, d) they both loose to other search engines.
To me, I believe is the most viable of all of the above option in the scenerio that you have set up. And in that case it would be very smart to be a stockholder of google stock just before the merger takes place, especially if microsoft is seen as buying out google.
quote:
Google searching for banks to lead IPO -sources
October 23, 2003 7:47:00 PM ET



By Jeffrey Goldfarb and Lisa Baertlein

NEW YORK/PALO ALTO, Oct 23 (Reuters) - Google, the 5-year-old company that redefined the way people search the Internet, is actively seeking bankers to help it sell shares of the company to the public, according to people familiar with the situation.

An initial public offering of Google shares has long been rumored and investment banks have tripped over themselves for years trying to convince the company to do so. The formal search that Google began signals it may be ready to go public in what would likely be the biggest technology IPO in years.

Google recently brought in about 35 firms to pitch for the business and invited about a dozen back for more conversations. The company has narrowed the list even further, said one person who requested anonymity. The IPO likely would occur in the first half of next year, several people said.

A Google spokesman declined to comment.

"Their timing is terrific," a technology investment banker said. "Search is very hot right now, they have great momentum. It's a weak IPO market and there's tremendous focus on Google."

Another person familiar with Google's plans said the company is aiming for a valuation of about $16 billion, a percentage of which would be sold to the public.

By comparison in the Internet world, Yahoo Inc. (YHOO) has a market capitalization of about $26 billion and Amazon.com Inc. (AMZN) about $22 billion.

Only 53 public offerings in history have exceeded $1 billion, IPO analyst John Fitzgibbon said.

The leading technology financial advisers are Goldman Sachs, Morgan Stanley, Credit Suisse First Boston and Citigroup, though it could not be confirmed whether any or all were among Google's final callbacks.

A Google IPO could open the door for more deals and revive Silicon Valley, which has languished for 3 years following the pop of the technology bubble. Some smaller IPOs, like those of online gift retailer RedEnvelope Inc. and a pending one for online travel site Orbitz, have generated fresh optimism.

The brainchild of two Stanford students, Google's austere site changed the world of search engines in 1998 by introducing a simple way to find information on the Web -- by basing its responses on the popularity of visited pages. It now handles about 150 million searches a day.

The company, based in Mountain View, California, derives most of its revenue -- estimated by analysts to be as high as $1 billion -- from search-related advertising services.

"It's a very profitable company," said one person familiar with Google's finances. "Earnings are in the hundreds of millions."

Venture capital firms Kleiner Perkins and Sequoia Capital, as well as Stanford University, are among Google's early investors and stand to reap huge returns from an IPO. (Additional reporting by Steve James in New York) REUTERS

© 2003 Reuters




Ain't that something, according to the article they are aiming for $16B, knowing they are really worth about 3 to 5, I guess if you shoot for the moon at least you'll land upon the stars if you don't get your target. Wow.

[This message was edited by Our Empowerment on October 28, 2003 at 08:58 PM.]

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