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August 18, 2005
Google at rest, Thursday, August 18, 2005, 10:12 AM
Given a choice on July 1 of buying the Dow 30 index, or shares in GOOG, how many were buying the Dow? But, how many would be happy had they chose GOOG? The answer would be, would you be happy today " less than seven weeks later " with at Dow at 9,850 versus 10,530?
So you tell me why GOOG is so weak when (1) the Dow has been up since July 1, (2) the S&P might be selecting the shares as a new component of the S&P 500 index, (3) Wall Street analysts are universally hot" for this stock, (4) the corporate performance is apparently astounding, and (5) some TH's like CNBC's JJC are pumping the stock nightly.
You'll have to tell me because I can't figure this one out.
Actually I might have earlier today, but I'm looking for somebody else to do a better job of explaining it. After all, I thought Wall Street had all the answers.
In case you don't understand it, GOOG is in BLUE in this chart. You might say it's at rest, for now.
And you might say it'll move up when it's in somebody's interest for that to happen.
Posted by Posted by Bill Cara on August 18, 2005 10:14:30 AM | Category: Cara Today in the Market
Discourse
"SAN JOSE, Calif. (AP) -- Google Inc. plans to sell another 14.2 million shares, raising about $4 billion, but the famous search engine company isn't providing many clues as to how the money will be spent."
think this could be the reason
Posted by: Carsten at August 19, 2005 4:43 AM [link]
Disclosure: Short GOOG (glub glub glub)
I suspect the 'rest' has to do with a number of factors including, but not limited too, the "overhang" of stock that may be sold on the anniversary of the IPO; a lot of people have big profits that will be taxed at long-, rather than short-term rates.
Today's announcement also increases the public float, which reduces - but does not eliminate - the pump that would occur IF it was added to the S&P 500. Despite my losses, I'm checking for the forseeable future...I'll just see how this plays out. As I see it, the upside and downside probabilities are relatively even and que sera sera.
Posted by: Greg Newton at August 18, 2005 1:01 PM [link]