Showing posts with label Google: Has it lived up to its Hype?. Show all posts
Showing posts with label Google: Has it lived up to its Hype?. Show all posts

Tuesday, October 27, 2015

Cream Always Rises




If your me, lets begin this diatribe with a warning. Your going to get busted around the head about what to do, what not to do and how to do it.

This is coming from a place that can very few can come from, essentially death.

I almost bought the big one in February 6 2012 and the first 6 months after that has got to be the hardest I have ever spent on this planet.

The point is I am still not working and together with my allotment of stocks and some state help I am managing.

It will not be until next year when my dear ex-wife will try to pry my daughter from cold wet dead hands that my portfolio really gets a rinsing.

That is surely when it gets to test its mettle.

When its down.

Well so far the portfolio has provided 3 years of income and Ive even managed to BUY one thing - 1000 Contact Energy Ltd for $4.85 and once again it is related to my ex-wife - she works there.

(Watch the CEO Dennis Barnes he's a great guy, I believe he's going to make this company great-the people that are surrounding him, he's got Transpower on his sights.)

Well, when you buy at the correct time - the correct time is not now - you buy value.

When I bought Fisher &Paykel Healthcare in January 2012 it was the right time to buy. It actually got cheaper, $1.86, but at $2.15 I got it. I sort of wanted it to get cheaper than $1.86 but it wasn't going to be.

I watched this stock like a hawk for YEARS, I had aready bought 5000 because I was aware of the quality of the company, but I literally spent years waiting for this stock to become a bargain.

And It did, and it has become one of the rising stars of my portfolio, and looks set to become a superstar in the many years to come.

I wouldn't buy it now. I would wait. It will happen again, the stockmarket WILL tank and there you will be, buying when everyone else is selling. Just remember it will perhaps take years but as long as you have bought a good solid company (Fisher & Paykel didn't even come to the market for cash like a whole host of others did in the Great Financial Crash) it wont matter much.

Cream always rise to the surface.

The last time the stockmarket started to tank was the end of 2008 and it really didn't start getting better until sort of 2011-2012 and it has been blue skys ever since.

I'm not with your Forbes.com though I don't believe we are headed for another head turner, not just now.

The only thing you really need to concentrate on during your seach for that Apple or Google is the possible duds you might collect along the way.

My office romance has been The Warehouse.

It just hasn't made the transition to"just in time" delivery yet. Its STILL trying the thing out. While the competition has entered its earlier mode, the Warehouse really doesn't know where its at RIGHT NOW it doesn't know whether its selling online or to us.

They just haven't got it right during bad times and if you take a look down the aisles of smiles there's not many smiles anymore.

Bye bye The Warehouse Ltd.

You've just gotta keep the original basis of a few stocks FOR LIFE and change them if you really have to - like the WHS.

Stuff like the aforementioned Fisher & Paykel your Auckland Airport, Ryman Healthcare and Mainfreight is stuff I will NEVER SELL. It just continues to add value to itself.

Like others I was more interested in adding value elsewhere - Fisher & Paykel - so I didn't buy more shares in Auck Air, Ryman and Mainfreight but you as an individual identify that one company, tap into it, and ride it for all its worth.

I've got four companies I can truly be proud of, they make a positive difference in the lives of those that work for them and those that encounter them on a day to day basis.

And you're gotta be happy with that.

After all, you only get one chance.



Toughen Up: What I've Learned About Surviving Tough TimesToughen Up: What I've Learned About Surviving Tough Times byMichael Hill 
Think Bigger: How to Raise Your Expectations and Achieve EverythingThink Bigger: How to Raise Your Expectations and Achieve Everythingby Michael Hill 




c Share Investor 2015





Thursday, October 11, 2007

Google: Has it lived up to its Hype?

When Google [GOOG.NASDAQ] listed on the NASDAQ Stock Exchange 3 years ago there was much hype surrounding the IPO, people were tripping over themselves to get stock and brokers sang its praises from Wall Street to as many people as they could.

Has the IPO lived up to all the hype and excitement?

If the share price is anything to go by then the answer would have to be a resounding yes.

The closing price for Google stock on October 10 was US$625.68c, up over 45% over the last year and up over 700% on its $85 IPO price.

Those are some spectacular figures, rivaling only Scarlett Johanson and Jessica Alba for sexiness.

Some other spectacular figures are its trailing P/E of 50.82 and almost $200 billion market cap,
making it one of the biggest listed companies in America, now even bigger than Walmart, [WMT].

While Google is growing very quickly with revenue and profit increasing, the financial data that might support the stock price doesn't match.

Buyers of Google stock have driven the share price up so high at the level it is now there is humongous growth already factored in.

Clearly Google is a very smart company, it dominates its rather large niche in online advertising and continues to develop innovative and clever ways to get more eyeballs watching its ads.

We have seen this sort of thing happen many times before with "tech" type companies, IBM used to dominate the mainframe and then PC market and now doesn't, and Microsoft [MSFT]the PC operating system and software market which it still largely does but it shows early signs of slipping.

No company can continue to operate with the spectacular growth that Google is currently experiencing and its stock price is clearly way over valued.

Look at Microsoft again. By comparison its financial data figures make Jessica Alba look like Joan Rivers after a late night drunken spree.


http://www.creativepro.com/Images/creativeprose/20050322_google.jpg


Microsoft has a net profit bigger than Google's revenue with a trailing P/E of just over 21, better profit margins, a dividend and a stock price of just 30 bucks.

Are you getting my point!!

While Google is a fantastic company with a great future, its stock is massively overpriced and any sustained weakness in its performance will see the stock fall just as quickly as it went up.

Be careful.


Google Prospectus

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From Fishpond.co.nz

Bird on a Wire: The Inside Story from a Straight Talking CEO

Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz

Fishpond





c Share Investor 2007