As insider, despite the crash of Google shares lives richer!
On 31. In January 2006, the Google share fell national over 17% below 370 USD. A clearer warning sign that the shares of the largest search engine provider in the world are significantly overvalued, can not exist. Previously, the stock was already through the previously large daily rate decline of 8.5 percent in her still young history. The price rate of 7.5% of 01. However, in relation to the closing price, however, was only allowed to be the beginning of a complete revaluation of the stock. But nevertheless, some unrecognizable analysts seem to capture their extremely bullish course destinations. Thus, Goldman Sachs Anthony Noto again emphasized its price target of $ 500, Mark Rowen from Prudential raised its price target also from 400 to 500 USD and Robert Peck by Bear Stearns just found at a price target of 550 USD. Only the analysts of Stifel Nicolaus Company saved traction and reduced the supervised Google share of keeping on sale.
Google Minicrash on 01. February 2006. Source: Yahoo
Costs run over control
Although the sales of Google continued to increase in the last quarter, but the costs, above all, in international business, seem to be transformed at the overheads and capital expenditures. Therefore, the Google share is currently trading about 200 to $ 250 US dollars over their fair market value.
It seems to be awarded that the search marketing hype is predominantly and google completely new growth sources to justify the high courses. This also shows the entry into video business together with CBS. In addition, Google wants to spend more than 1 billion USD for DMARC broadcasting, a supplier of automated radio communication services. Possibly Google, which has a cash equivalent of 8 billion US dollars, will also open a music store that comes into competition with Apple. Also, the round of supposites make the round, so z.B. in terms of Napster or on the supercomputer manufacturer Cray. Expensive buying to position themselves in the 3G and 4G wireless environment, however, also high risks that can be achieved to earn the profit further.
Google has a review that is based on a perfectly functioning engine, but this device is increasingly going to stuttering (Google share price from September 2004 to 1.2.2006). This has been recognized by the flee and therefore their own shares from the beginning of November 2005 to the end of January 2006 massively sold.
These sell is the legal variant of selling shares. Companies have access to all data of the company in contrast to analysts. Therefore, it does not come from about about that presidents, CEOs and CFOs usually find the best buying and sales time for the shares of your company.
Google GRANDER AND PRASIDents Lawrence Page And Sergey Brin: Our Informal Corporate Motto is "Do not be Evil." Image: Google
It is therefore crucial to studying the scope of insider transactions extensively. If insiders buy the shares of their own company, then to ame that they know more than the normal investor. The reason for this can be a high growth potential, a merger, an acquisition or the undervaluation of a share. If an insider buys a stock, then he expects a future price increase.
At high insider buying of many lodging fleets at the same time is in most cases an expected strong price decline of the shares the reason why these are off. So Nejat Seyhun, a scientist from the University of Michigan found out that a flee when she bought the shares of her own company, transferred the overall market by about 9% during a year. On the other hand, they sold their shares, their share is about 5.4% worse than the overall market. Information about insider trading can be found on Yahoo! Finance, at Vickers Research as well as on the Sec Edgar Database.
Cancel at the expense of the actions
The two company primrient Lawrence Page and Sergey Brin both have agreed shares in total 9.4 billion US dollars together in the period from the beginning of November 2005 to the end of January 2006 to the end of January 2006. The CEO of the company, Eric Schmidt, sold equities worth $ 1.2 billion, the CFO George Rayes shares for $ 348 million and the Sales Director Omid Kordestani even shares for 2.1 billion US dollars.
Sales Director and Senior Vice President Omid Kordesta. Image: Google
The high sums of insider-selling from the top leaders Googles arrive by offering many top executives stock options, whereupon this has been paid since 2004 with an annual salary of 1 USD, including CEO Eric Schmidt and the two landlarry page Sergey Brin. No bad deal, considering that CEO Schmidt is now almost 5000 times its 2003 annual salary of 250.000 USD could earn only 3 months by selling his Google shares.
The Google’s actions know the two Gruner Larry Page and Sergey Brin, but hardly anyone knows the Senior Vice President for global sales and business development Omid Kordestani. He has passed the company since his entry into Google in 1999 from zero to 3 billion sales. It should be gloriously grotesque that someone can realize 66% of Google’s sales as a fee for its activity. The unique wise from Google is not just the Web Traffic, but also the absurd Money Flow, which he has brought his leadership.
That money can spoil the character is well known. It can therefore hardly be surprised that the search engine giant from financially interested out the state censorship in China. However, this will be the company motto of Google "Do not be bad" More and more to the farce ("Google Won’t be Evil!"To). Censored search engines are also provided by the Chinese by Google competitors, which is why MSN or Yahoo are already criticized. Now the image of Google is more and more aligned.
Google wanted to be different than his competition, but self-center and prevention of freedom of expression are not the appropriate means to improve the meanwhile ramponized image. A massive crash was allowed to further harm the already struck image. It seems like Google Microsoft still wants to overrumber the privacy and abuse of data protection. With the data that Google is collecting today, user profiles can be created, which will open a surveillance state of Tur and Tor. Therefore, Google makers do not need to be surprised if they are measured today at the mabs that they have set themselves, namely the good guys of next door. But, it’s all history!
Artur P. Schmidt operates the entrepreneur cockpit and had already predicted the burglary of the Google share: Google Crash Ante Portas?.