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Google Stock Booble--er, Bubble--Continues to Deflate Price Chart
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PollCan Maduro get a fair trial from Alvin Hellerstein? Of course, Judge Hellerstein is a jurist with integrity. 0% No, Judge Hellerstein works on behalf of the Zionist deep state. 0% Whether he does or not is irrelevant, Maduro is part of the op. 0% He will be bribed into pleading guilty to something minor. 100% Other (specify in comments.) 0% Total votes: 1
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ha! RT is famous! AND being proven right...
http://wtcdemolition.com/blog/node/24
He noted of the article today (http://wtcdemolition.com/blog/node/462#comment-3510):
"I'd change a few things with hindsight, but still it's a story I've never seen explained anywhere else, and reveals what a scam its been since it went public..."
The Googlian Knot
gretavo's picture
Submitted by gretavo on Wed, 2007-06-13 14:44.
1
point
This is something I wrote before Google went public... a comment on the recent open thread at 911B about Google censorship and their "do no evil" matto prompted me to repost...
Thursday, August 12, 2004
--------------------------------------------------------------------------------
The Googlian Knot
OK, so the smell of the Google scandal may not have reached everyone. I've therefore resolved to dissect the damn thing, to really reveal the malodorous rot, if only because it lays bare the cynicism built into capitalism and the pathetic cowardice of experts on economics in failing to expose this, just as they let Enron and the Tech Bubble proceed apace, saving their recriminations for when the looters had disappeared...
So... Google is currently a privately owned company, consisting of roughly 240 million shares of stock which, when 20 million were secretly (and thus in violation of SEC regulations) used to pay about 1000 companies and consultants, were valued by the company at about $3 each. So by their own measure, the company is worth about $720 million. In other words Google's not worthless, obviously, in fact the company made a whopping $100 million or so in the last year, by selling about $1.4 billion in online ad sales (so their profits were about 7% of sales, the rest of that revenue, or $1.3 billion, went somewhere, to run the company, pay the CEO, etc...) and their prospects are not bleak, just challenging.
Who owns it now? Different people and companies own different amounts. Both of the founders own an amount in the 10's of millions, Yahoo owns a few million, each of the venture capital firms which got Google off the ground as a company with $2 million each own 25 million shares, and of course, 1000 other companies and consultants own on average 20,000 shares each. Then of course, the corporation itself owns a certain number of shares.
Google's much ballyhooed IPO*, or initial public offering, will be offering 20 million shares from the company's stock, but will also include about 20 million more being sold by some of the companies and individuals who own their own shares.
Here's where the magic is about to happen...
Remember, Google is a company worth less than a billion dollars--let's say it's made up of 240 million three-dollar bills. 20 million of these bills will be sold to the public at $108-$135 a piece. Let's round it down to $100 for simplicity. On the side, another 20 million shares will be sold at roughly the same price by insiders. So one day after it's IPO, here's what the world will look like (roughly):
The public will have given Google $2 billion for 20 million shares of stock. They will also have given a handful of insiders another $ 2 billion for their Swiss bank accounts.
The public will own 40 million shares for which they paid $ 4 billion. $2 billion was pocketed by insiders, but the other $2 billion is now held by the company as cash, in addition to the rest of their assets, in effect tripling their actual value as a company (assets minus liabilities) from the day before to about $3 billion. You might be wondering why the public paid $4 billion to be owners of one-sixth of a company worth $ 3 billion... well, let's step back for a second.... The actual value of the company has nothing to do with its value in real life, but instead its value on paper, i.e. the stock price multiplied by the number of shares, in our case, about $24 billion. Wow! Did you see that? We just turned a pile of 240 million three-dollar bills into a company worth more than General Motors!
It gets better though, for the insiders. Remember, they only sold 20 million of the company's 240 million shares. They still own the rest! They managed to turn their sub $1 billion company into a $24 billion behemoth! At scheduled intervals, they will sell off their shares so long as there are buyers, until they've turned all their three-dollar bills into gold. Pretty soon, people will catch on and the share price will float, or shoot, down to a more realistic price level determined by the market. If annual profits remain at around $100 million, then the average historical price to earnings ratio (20) would suggest a fair market value of about $2 billion.
*The Google IPO was the brainchild of the following two venture capital firms:
http://www.kpcb.com/team/
http://www.sequoiacap.com/partner_matrix.asp
I researched this article with Google. :)
Meanwhile, the GOOG marches higher. :smokin:
The entire stock market is FUBAR
While the underlying concept of capital acquisition in exchange for partial company ownership is good in theory -- just as capitalism is -- the current system can hardly be considered productive. In its exceptional myopia, it systematically rewards permanent maximum growth of profit, paid for with outsourcing, wage reduction and a plethora of other means undesirable from the actual human perspective, thus actually punishing sensible economic development. Brokers "make money" by pushing companies into ever more disgusting practices to achieve short-term gain, personifying the so-called and allegedly unalterable "forces of the market" -- a term useful primarily to deny any personal responsibility.
In times of boom, this mad machine produces ever larger numbers, mistaken for wealth by stockholders and common citizens alike, until its utterly idiotic structure has devoured enough of the REAL economy, the one in which people actually render useful goods and services unto others, to let it fail -- leaving even those who thought they were rich hung out to dry. Albeit not in terms of stocks, this is just what's happening these days: Mountains upon mountains of virtual wealth are turning back into thin air, and instead of writing them off, as they should be, the formerly wealthy are pushing to exchange their even funnier-than-usual money into its common cousin, the Federal Reserve Not(e).
I would hope that a sound money system, one without the intrinsic cannibalistic requirements of today's, would alleviate this drive of greed, which is comparable to a cancer growth competition, turning stocks back into what they were originally conceived to be: long-term capital participation in a company, not bets on who will be the most ruthless, amoral cocksucker du jour.
_________________________________
happiness is either here or nowhere
Federal Reserve Not(e) - LOL
you make that up?
Guess so.
On topic, check this out -- a congresswoman asks the american people to not let congress pass the bailout. Honi soît qui mal y pense, but is she asking for a revolution?
_________________________________
happiness is either here or nowhere
Bailout Rejected - Bubbles Everywhere Cringe!
7.8M
–38.47 –8.92%
$392.57
Wall of Shame
See the names under "ayes", i.e. those who voted for the bailout:
http://clerk.house.gov/evs/2008/roll674.xml
w00t?
"BILL TITLE: To amend the Internal Revenue Code of 1986 to provide earnings assistance and tax relief to members of the uniformed services, volunteer firefighters, and Peace Corps volunteers, and for other purposes"
I mean, "other purposes" sure is vague enough, but...
_________________________________
happiness is either here or nowhere
That's why it's called...
CONgress.Â
--
Though human noses have an impressive 5 million olfactory cells with which to smell, sheepdogs have 220 million, enabling them to smell 44 times better than men.
So, this really is the title of the bailout bill?
Incredible.
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happiness is either here or nowhere
By defeating the bill...
...the dimbulbocrats can now claim the repukelians to be too stingy "to provide earnings assistance and tax relief to members of the uniformed services, volunteer firefighters, and Peace Corps volunteers..." AKA "first responders".
Clever little shits, aren't they?
I support DownsizeDC.org's proposed legislation:
“One Subject at a Time Actâ€
http://www.downsizedc.org/etp/campaigns/83Â
"Congress routinely passes unpopular laws by combining them with completely unrelated bills that have majority support. For example . . .
The REAL ID Act, which was designed to create a national ID card, had so little support in the Senate that it couldn't even be brought to a vote. A national ID card was opposed by a majority of the Senate, and historically, by the vast majority of the American people, but now it is the law of the land."
--
Though human noses have an impressive 5 million olfactory cells with which to smell, sheepdogs have 220 million, enabling them to smell 44 times better than men.
Everywhere you look
there's heaps of evidence that it is due time this regime vanished from the pages of it. Fortunately, that is already happening!
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happiness is either here or nowhere
WTF just happened to Google's stock?
Apparently it closed at $322 yesterday and opened $89 higher this morning. I wonder who stepped in to buy up enough stock to reverse the apparent nosedive? Don't forget people, an inflated housing market is just one way to create bogus wealth. Inflated stocks are the other and they all suffer from the same pyramid scheme flaws--eventually no one wants the worthless crap being bid up.
See, unlike a real share of stock, Google stock doesn't pay you dividends--i.e. your cut of the company's profits. The only way buying Google stock can make you money, in other words, is if the share price goes up after you buy it and then you sell it. The share price can only go up when there are more people who want to buy it than who want to sell it, but who wants to buy something for $450 that provides no return other than the possibility that some sucker somewhere (like with $700 billion to spare) will buy it from them for $500?
Here's the bottom line. A bunch of people who thought they were really rich are trying to avoid admitting that they are not really rich by having the US taxpayer give them the money they claim to have been worth this whole time.
Stock Snapshot
Today's open $411.15
Tuesday's close $322.99
52-week range
52-week high $747.24
52-week low $341.43
Market capitalization 119.8B
Avg. volume (10-day) 7.1M
Shares outstanding 314.4M
Dividend (yield) n.a.
Ex-dividend date n.a
something weird happened with the goog
A friend told me yesterday that some afternoon trades of Goog were undone / rolled back because of "glitches" - I don't know much about it other than that but there are a bunch of articles on it today; here's one:
http://www.latimes.com/business/la-fi-techblog1-2008oct01,0,7757353.stor...
"Nasdaq canceled all trades at or above $425.29 and trades at or below
$400.52 that were executed between 3:57 p.m. and 4:02 p.m. EDT. Nasdaq
set the closing price at $400.52, which was a 5% gain after Monday's
12% loss. The decision cannot be appealed, he said."
Wanna know what could happen to Google? Ask Jeeves!
Collapse Beginning in 1999
As Ask Jeeves expanded and its natural language online services grew increasingly popular, the company's revenues increased exponentially. Ask Jeeves generated $23,000 in sales in 1997, $800,000 in 1998, $22 million in 1999, and $58 million in 2000. Profits, however, failed to materialize amid the energetic revenue growth. The company sustained annual net losses that reached $675 million by 2001. Perhaps more disheartening to Wrubel and his executive team, investors were losing faith in the company, causing Ask Jeeves's stock value to plummet severely. From a high of $190 per share in 1999, the company's stock began spiraling downward, falling to just $.86 per share by 2002. The company was in trouble, but before its share price reached its nadir, sweeping changes were made to arrest its spectacular fall. Ask Jeeves's efforts to effect a turnaround began in earnest in December 2000, an occasion marked by the arrival of a new chief executive officer.
I doubt that the NSA will let this happen to google
After all the NSA has supposedly invested in google, I don't think that they can afford to let this happen unless they expect or plan to expand their partnership with Micro$oft in order to utlize apparent backdoors in Vista and whatever the next POS is unleashed from Redmond to fill the voidvoid of google becoming irrelevant.
--
Though human noses have an impressive 5 million olfactory cells with which to smell, sheepdogs have 220 million, enabling them to smell 44 times better than men.
it will still exist...
ask jeeves still does, believe it or not, as ask.com. the real stuff will always be there. what vanishes is the absurd hyper-valuation. Larry Page and Sergey Brin, in other words, become a lot less wealthy on paper (though they will have sold enough of their own over priced shares to not mind so much...)
google numbers
I know my math is old fashioned, but if google's assets are $29 billion and there are 314.4 million shares outstanding, one might assume the value of a share would be around $93. So why on google earth, you might ask, would anyone buy any google stock at $100, let alone $400 or $700?
PART I—FINANCIAL INFORMATION
GOOGLE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value per share)
December 31,
2007
June 30,
2008
Assets
Current assets:
Cash and cash equivalents
Marketable securities
Accounts receivable, net of allowance of $32,887 and $67,326
Deferred income taxes, net
Income taxes receivable, net
Prepaid revenue share, expenses and other assets
Total current assets
Prepaid revenue share, expenses and other assets, non-current
Deferred income taxes, net, non-current
Non-marketable equity securities
Property and equipment, net
Intangible assets, net
Goodwill
Total assets
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
Accrued compensation and benefits
Accrued expenses and other current liabilities
Accrued revenue share
Deferred revenue
Income taxes payable, net
Total current liabilities
Deferred revenue, non-current
Deferred income taxes, net, non-current
Income taxes payable, non-current
Other long-term liabilities
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value, 100,000 shares authorized; no shares issued and outstanding
Class A and Class B common stock, $0.001 par value: 9,000,000 shares authorized; 312,917 (Class A 236,097, Class B 76,820) and par value of $313 (Class A $236, Class B $77) and 314,253 (Class A 238,889, Class B 75,364) and par value of $314 (Class A $239, Class B $75) shares issued and outstanding, excluding 361 (Class A 336, Class B 25) and 101 (Class A 99, Class B 2) shares subject to repurchase at December 31, 2007 and June 30, 2008
Additional paid-in capital
Accumulated other comprehensive income
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
See accompanying notes.
googley numbers
I think stocks are more about the potential future earnings than the present value. And of course speculation; like I think you wrote earlier, $400 google shares are a great deal if you can find some other sucker in a week or month from now willing to pay $500!
Who cares what they're "really" worth, until the day of reckoning, which seems like that day will be put off a few more months or years thanks to the generosity of America's youth and unborn future generations, who have quite the debt to pay, soon to be $700 billion larger...
Scroogle Scraper for Firefox & IE7
Nifty. Just added to to FF as the default for the search box. Asks if you want the change to Scroogle as default search engine to take effect immediately.
http://mycroft.mozdev.org/search-engines.html?name=scroogle
Scroogle
Shona Brown's Sweet Googly Deal...
I don't mean to pick on Shona, but she just exercised (some of?) her stock options... so to all of you following along at home, Shona just bought 583 shares from the company's magical share reserve for $15,000 and turned around and sold them to your retirement fund manager for $240,000. Now, as the stock price continues to decline, you can bet that every insider who can sell or exercise options will be doing so while the getting is still good. That means that as the share price goes down, the number of shares in circulation steadily increase, further driving the share price down and... well, you get the picture. Wanna buy some Google stock?
Latest Insider Trades
10/01/2008BROWN SHONA L
Exercise or conversion of derivative security exempted pursuant to Rule 16b-3
Shares bought: 583
Share price: $26.00
Trans. value: $15,158
10/01/2008BROWN SHONA L
Open market or private sale of non-derivative or derivative security
Shares sold: 583
Share price: $411.15
Trans. value: $239,700
09/30/2008KORDESTANI OMID
Open market or private sale of non-derivative or derivative security
Shares sold: 200
Share price: $400.00
Trans. value: $80,000