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View Full Version : Google, stock market?


ServerPlace4NET
04-30-2004, 08:40 PM
The title says it all. Do you plan on buying google shares?

NE-Andy
04-30-2004, 08:50 PM
I probably won't jump in that fast... gonna see how the trend goes first, then decide later.

JayC
04-30-2004, 08:50 PM
Most likely I'll avoid it just like I'd avoid any overhyped (and thus likely overvalued) IPO. Maybe pick up some shares a few months down the road after the price stabilizes.

Artashes
04-30-2004, 08:52 PM
Originally posted by serverplace
The title says it all. Do you plan on buying google shares?
As much IPO as I can handle. ;)

They are expected to raise a record amount ($2 billion), more than any Internet company in history, including AOL (twice the amount I think).

Kerry Jones
04-30-2004, 09:16 PM
I'm thinking of maybe trying to get a bank loan and invest it all into google, but i'll probably chicken out.

Trifolic
04-30-2004, 09:20 PM
Originally posted by Kerry Jones
I'm thinking of maybe trying to get a bank loan and invest it all into google, but i'll probably chicken out.

The bank won't give you a loan to invest in the market. And if you lie about what you use the money for, well thats a federal offense..

ServerPlace4NET
04-30-2004, 09:20 PM
Originally posted by Artashes
As much IPO as I can handle. ;)

They are expected to raise a record amount ($2 billion), more than any Internet company in history, including AOL (twice the amount I think).

$2 billion for a serach engine, now thats something;)

JayC
04-30-2004, 09:23 PM
Originally posted by Artashes
They are expected to raise a record amount ($2 billion), more than any Internet company in history, including AOL (twice the amount I think). Yeah... I'd look at that as a good thing if I owned a piece pre-IPO. Those are the guys who should be excited about the buzz. But the IPOs that are worth buying are those that the general public doesn't know about...

I suppose there's not real harm in putting in a reasonable bid, and I may think about that. But I'd want to bid at something I think is a realistic value for the stock, which means that I probably won't have a chance in this Dutch auction IPO because plenty of people will be bidding at levels that are bound to be ridiculous.

Smart stock market investments aren't based on emotion and don't follow hype.

Kerry Jones
04-30-2004, 09:52 PM
The bank won't give you a loan to invest in the market. And if you lie about what you use the money for, well thats a federal offense..

I thought I could get a loan in general for whatever the money is needed for... i'll talk with my mom since she works for the back :p

subigo
04-30-2004, 10:40 PM
Originally posted by Trifolic
The bank won't give you a loan to invest in the market. And if you lie about what you use the money for, well thats a federal offense..

I worked for a large bank for a while... as long as it's a personal loan, it can be used for anything.

hostjet
04-30-2004, 10:53 PM
$2 billion, I recall a while back speculation that it was worth around $18 billion.
I reckon they will raise more than $2billion if it is some kind of an auction style IPO.
microsoft will probably be very interested.

serialbeggar
05-02-2004, 02:30 AM
CNBC was talking about Google's valuation. They estimated their current valuation put in terms of share price would be around $149 a share. If the IPO happens by Dutch Auction, you can expect that to the minimum for the starting bids.

NE-Andy
05-02-2004, 02:49 AM
Off topic:
Serialbeggar, I just noticed your website... I'm laughing quite hard right now and all I can say is that I am speechless...

Back to topic:
Do you guys think Google's stock will actually be worthwhile? As mentioned above, I'm going to hold back for a bit, but I'd like to see what you guys think... Is it going to be worth my time to actually invest in it?

Trifolic
05-02-2004, 03:02 AM
Originally posted by Alfarin
Do you guys think Google's stock will actually be worthwhile? As mentioned above, I'm going to hold back for a bit, but I'd like to see what you guys think... Is it going to be worth my time to actually invest in it?

I think for a 5-10 year investment with some splits might be good. However internet based business can be really shakey, hopefully google can and will keep up with the techonology to advance.

As I said in another post if you had invested $10,000 in Microsoft during its IPO, it would be worth a little over $6 million now..

AlaskanWolf
05-03-2004, 04:54 AM
now, i know nothing about stocks

i was reading where if you invested 10k in yahoo in 99 or whever they went public, it would be worth 1 mill 3 years later

how was that so? i plugged the numbers and even at their high of what ?$240? it didnt come out to 1 mill

what am i missing

Trifolic
05-03-2004, 05:03 AM
Originally posted by AlaskanWolf
now, i know nothing about stocks

i was reading where if you invested 10k in yahoo in 99 or whever they went public, it would be worth 1 mill 3 years later

how was that so? i plugged the numbers and even at their high of what ?$240? it didnt come out to 1 mill

what am i missing

You are missing splits. I'll give you a quick example..

You buy 100 shares for $1 each..

The stock goes up to $10 each and then does a split..

We'll do an easy 2:1 split..

You now would have 200 shares that are worth $5 each..Also depending on the amount of time you are invested you can choose to re-invest or collect a divedend check.. If you re-invest it takes the earngings and just buys more shares...

It's not that the price goes up alot that makes you money its that you are invested from the begining, and reap all the benefits of how the market works..

AlaskanWolf
05-03-2004, 05:23 AM
gotcha thanks

Hostex Australia
05-03-2004, 07:11 AM
im thinking of getting a few :)

KIA-Joe
05-03-2004, 08:34 AM
Originally posted by Trifolic
As I said in another post if you had invested $10,000 in Microsoft during its IPO, it would be worth a little over $6 million now..

So that means if you had only invested $100.00 @ the IPO it would be worth $60,000!

JayC
05-03-2004, 10:29 AM
It's not really a very useful exercise to compare Microsoft's IPO in 1986, before the "dot-com bubble burst" with Google's in 2004, which is looked upon hopefully as a possible signal that dot-com businesses might become a good investment again.

Besides the timing, they are two companies in completely different situations both in corporate culture and in their relationships to their respective business sectors. Granted, Microsoft's IPO was hyped just about as much as Google's is (though their prospective really was relatively pessimistic), but the chances of Google going in as undervalued as Microsoft was are pretty slim.

Webdude
05-03-2004, 10:40 AM
Well, this just means Google will go to crap. It's gonna start looking like MSN and Yahoo with ads all over the place. After all, now they are going to have to keep a lot of high profile stock holders happy. Google is extremely profitable now, why would they do this??

I think they know something they arent letting on to, and it's not Gmail. Either they have something huge up their sleeves, or they are expecting profits to dive.. either would explain why they need a sudden influx of cash over what they already have.

JayC
05-03-2004, 10:52 AM
Originally posted by Webdude
Well, this just means Google will go to crap. It's gonna start looking like MSN and Yahoo with ads all over the place. After all, now they are going to have to keep a lot of high profile stock holders happy. Google is extremely profitable now, why would they do this?? There are plenty of reasons to take a company public other than the short-term infusion of cash that it might bring. Not least among them is the opportunity for the initial investors to get back their expected return. Without knowing the agreements that were made among those who invested in Google's startup, we can't know what the circumstances are.

Another important factor for Google was undoubtedly the SEC regulation that holds a privately-held firm with 500 or more shareholders to essentially the same reporting and disclosure requirements -- and the associated large expenses -- as a public firm. Google's always been very secretive about its finances, and going public would have ended that. But hitting that threshold (which they reached through offering stock options to employees) meant it would have ended anyway.

Bill Gates has been quoted as saying the same rule motivated Microsoft's IPO, which he was hesitant to initiate, in 1986.