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Google (GOOG): Q1 EPS of $10.08 beats by $0.43. Revenue of $8.14B (+24% Y/Y) misses by $10M....

Google (GOOG): Q1 EPS of $10.08 beats by $0.43. Revenue of $8.14B (+24% Y/Y) misses by $10M. Company announces "effectively, a 2-for-1 stock split" with a new class of nonvoting shares. Shares +1.2% AH. (PR)
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Comments (12)
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    LOL - non voting? just give us your money
    12 Apr 2012, 04:20 PM Reply Like
  • mogando
    , contributor
    Comments (313) | Send Message
     
    non-voting ? perfect for the high frequency traders. they only hold the stock for milliseconds at a time, and rarely overnight. they would never qualify to vote anyway.
    12 Apr 2012, 04:26 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    New share classes with stocks never do well. What are they afraid of?
    12 Apr 2012, 04:25 PM Reply Like
  • berniespear
    , contributor
    Comments (234) | Send Message
     
    i'll take it!
    12 Apr 2012, 04:26 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    GOOG going private. Back door style..

     

    Nice.
    12 Apr 2012, 04:39 PM Reply Like
  • mitrado
    , contributor
    Comments (2001) | Send Message
     
    "a 2-for-1 stock split" with a new class of nonvoting shares"

     

    What does this mean for those who own shares at the moment!?
    12 Apr 2012, 05:03 PM Reply Like
  • labas112
    , contributor
    Comments (335) | Send Message
     
    So does this mean my new shares after the split are these lame Class C shares? I think the shareholder gets "jobbed" on this one.
    12 Apr 2012, 05:51 PM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    If you read the documentation, you will have 1 class B share and 1 class C share... and so will everyone else. So you'll have the same voting share you had before. If you want to double your voting rights for what will probably be a very small premium, you are welcome to sell your C share and buy a B share instead.

     

    There are probably mechanisms by which you can get jobbed here, but it appears that they'd take quite a bit of time to play out. Much more plausible, I'd think, is Stoploss's theory; the devil may well lie in the details of the stapling agreements. In any case, it's not apparent to me how you can lose out of this; none of these shares are paying a dividend anyway, and the founders already control a majority of the voting rights so you're not really being diluted here in any sense because your voting rights are worthless anyway. As Larry and Sergey point out, if you don't like the existing structure, this won't change that.
    12 Apr 2012, 07:07 PM Reply Like
  • mitrado
    , contributor
    Comments (2001) | Send Message
     
    The way I can lose out of this is the same as with any other stock: investor's madness can take stock price down.
    The AH trading looks stupid and I'm wondering if I should sell GOOG right at the opening bell tomorrow... :-/
    12 Apr 2012, 07:47 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    The way an investor could get screwed is if they start buying back the Class B shares in coming years.

     

    As someone mentioned earlier it becomes a backdoor way of going private.
    12 Apr 2012, 11:23 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Short term volatility due to re weighting.

     

    In a world of HFT, it could occur rather quickly. Or not.
    12 Apr 2012, 07:59 PM Reply Like
  • mitrado
    , contributor
    Comments (2001) | Send Message
     
    Looks like my hunch was correct. Sold right at open, at 647.47$ ... about 11% profit, not bad... :-P
    13 Apr 2012, 10:18 AM Reply Like
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