Googlemania

It’s happening. Watch the Wallstrip Google video again. The “man on the street” does not believe. The “man on the street” does not own Google. They own Yahoo and Microsoft. They own 500 shares, 100 shares, 10 shares of that crap.

Don’t worry – Google paper will be crap as well – just not yet.

It is the same [email protected]#cking game played over and over by Wall Street. IT IS CALLED DISTRIBUTION. It takes time. When Wall Street gets hold of a beauty like Google, they take their sweet time distributing it one share at a time to every last believer in the story. See – Intel, Microsoft, Dell and Yahoo. Could take 15 years or three. The Google stock distribution game has just begun.

It is the normal complaints I am hearing again – stock is too high, market cap is ridiculous, shares are too expensive, too many acquisitions, I should have bought at $162, should have bought on the pullback to $320…

In the meantime, everyone owns Yahoo and Microsoft – stock is too low, market cap and PE are reasonable, it’s cheap relative to Google, I can always double down cheaper because it’s already so low. OY!

That poor sap at the end of the Wallstrip Google video thinks he is actually smart for owning Yahoo as a proxy for Google. He is waiting for Yahoo to “follow Google’s tracks” . That happiness is called “COMFORT”. It just feels right because the idiot next to you owns it.

Yahoo and Microsoft are in a hole and digging themselves deeper. James Cramer is doing a daily show about who Yahoo should buy. That is absurd. There are no public companies they should have bought save YouTube. But Cramer is crazy “like a fox” and a rating’s hound so it makes for good CNBC fodder.

YouTube was a smart and cheap acquisition. The YouTube haters were wrong. I wrote a lot on the subject predicting a buyout – most recently here . They paid $1.6 billion in stock but have gained $20 odd billion in market cap since the announcement. At the very least it was smart to keep it out of enemy hands.

Whether they integrate properly remains to be seen, but the market has spoken for now. Google just announced great numbers and the stock would have to drop 15 percent to get to pre YouTube market valuation.

The “man on the street” says it’s a joke. “The man” will have changed his/her mind before the Google phenomenon is over.

All that said, I do not own the stock. If it takes out it’s all-time high – it is close – I would own it based on my strategy. I have owned it before and been stopped out of the trend in the summer swoon.

People call those that have bought and held this stock – absurd. I guess it’s normal that Cramer has had about 100 buy and sells of GOOGLE in the past 12 months. His latest is a buy – I think – with a $560 price target.

I think price targets are a sham and are the one true remaining sign of absurdity from the last bubble. They should be banned, BUT that’s another show! We are working on the footage.

PS – Congrats to my friend and contributor Briann Shannon for his positive mention in Barron’s.

PSS – My condolences to Steve Ballmer for looking like a complete putz. What a shitty job to have (other than the pay and perks :) )

8 comments

  1. Mike says:

    What is your take on Mark Cuban and his obnoxious take on Youtube, saying that it is worthless?? He strikes me as a bit of a pretentious hypocrite.

  2. Mr Angry says:

    Hey Howard, you know your mate was right before when he said it’s “PPS” not “PSS”, right? PS stands for Post Script – something added after the main body of writing. So something after the Post Script is Post Post Script. Just thought I’d have a dig at you because you must be getting a big head with Wallstrip going so well :)

  3. Eddie Daroza says:

    Ballmer is a madman! The guy looks drunk. Guess that’s what’s happens when you work so close to starbucks hq.

  4. Howard Lindzon says:

    Thank angy – If you knew Hans yo would not listen either :)

    He’s drunk in Singapore anyway the prick. :)

  5. Bill aka NO DooDahs says:

    Yep, I prepped a post on GOOG and delayed the timestamp to aftermarket today – and my thesis is long-term look for a short, but play momentum if it made a new high. And GD it, it made the MF before the post even aired.

    ARRGHH!

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