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Google (GOOG) discloses chairman Eric Schmidt plans to sell 3.2M Class A shares, or 42% of his...

Google (GOOG) discloses chairman Eric Schmidt plans to sell 3.2M Class A shares, or 42% of his stake in the company, over the course of 2013 through a Rule 10b5-1 trading plan. The sale will encompass nearly 1% of Google's outstanding shares, and 3.2% of their voting power. (8-K)
Comments (27)
  • AnaleezaHolder
    , contributor
    Comments (29) | Send Message
     
    He still retains 58% of his shares and this frees up a load of capital to do with whatever he pleases. He's too young to be segueing into stepping down from his active role in GOOG, so maybe he's looking to fund other outside projects. Or many other possibilities I suppose.
    8 Feb 2013, 06:45 PM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    Those trips to North Korea are expensive ;-)

     

    (just kidding, no one get riled up, please)
    8 Feb 2013, 07:38 PM Reply Like
  • Ricard
    , contributor
    Comments (3829) | Send Message
     
    Or maybe GOOG has hit the top. Just maybe.
    9 Feb 2013, 04:34 PM Reply Like
  • u01bsb0
    , contributor
    Comments (622) | Send Message
     
    maybe he is predicting a topping in share price for google soon?
    8 Feb 2013, 07:59 PM Reply Like
  • pagreen1966
    , contributor
    Comments (584) | Send Message
     
    They were discussing Google's share price on bloomberg's street smart on Friday and the consensus was that there was no upside left. Probably a very shrewd move by the man. You must always know when to cash your chips in!
    9 Feb 2013, 12:42 PM Reply Like
  • PBINLA
    , contributor
    Comments (3) | Send Message
     
    Probably true!
    10 Feb 2013, 01:04 AM Reply Like
  • gmmpa
    , contributor
    Comments (484) | Send Message
     
    Google is finally breaking out of the funk it has been in over the last several years. It is very disappointing to hear that Schmidt is cashing in such a large block of stock at this time. This is the same bull shit that caused me to dump all my Microsoft shares years ago. Microsoft had not traded over $31 share because whenever the market bids up the stock price Gates and Balmer and other senior management take turns cashing out options and grants. Why should these guys care about capital growth and investor interests when you can cash in 3 million shares at $785/share? Mike Dell cashed out $17 billion from DELL over the years and when DELL stock is in the tank he steps in and screws the retail investors by bidding with Microsoft to take his old company private for another round capitalization at investor's expensive. These guys are all greedy pigs!

     

    If Google's stock price is hurt by this move I will cash out my long position and move my investment to better opportunities. What is the use of investing in a growth company if the stock price stays is a perpetual trading range never increasing because the principles keep the price in a lower trading range by increasing the circulation in the outstanding shares?
    8 Feb 2013, 08:45 PM Reply Like
  • Cameron Reed
    , contributor
    Comments (67) | Send Message
     
    I share your frustration, but it's not as if you have your entire net worth in Google stock like Eric. It's understandable that he wants to cash it some of his shares.
    8 Feb 2013, 08:59 PM Reply Like
  • grinninbrit71
    , contributor
    Comments (168) | Send Message
     
    Yeah, how can you blame a guy for needing to have 2.5 billion dollars liquid to cover the kids education or a decent vacation property.
    8 Feb 2013, 10:38 PM Reply Like
  • dnpvd51
    , contributor
    Comments (1970) | Send Message
     
    Ditto on sharing the frustration. The game is rigged.
    9 Feb 2013, 01:43 AM Reply Like
  • bdy
    , contributor
    Comments (150) | Send Message
     
    the "game" is not rigged. Hes selling some shares when the stock market is extremely high and so is his company. That's called selling high and its pretty basic. I don't want to start an argument but he's making a smart decision.
    9 Feb 2013, 11:00 AM Reply Like
  • dnpvd51
    , contributor
    Comments (1970) | Send Message
     
    I don't know the details here but the game is rigged.

     

    The insiders play games with options.

     

    If this particular trade is not rigged it is the exception rather than the rule.
    9 Feb 2013, 01:01 PM Reply Like
  • bdy
    , contributor
    Comments (150) | Send Message
     
    the stock market isn't rigged. he is selling at an all time high maybe you should do the same. if you honestly think it's rigged hide your money under a mattress and let inflation destroy it. the only thing that is rigged is the social security system and taxes lol.
    11 Feb 2013, 09:27 AM Reply Like
  • dnpvd51
    , contributor
    Comments (1970) | Send Message
     
    "the stock market isn't rigged. he is selling at an all time high maybe you should do the same. if you honestly think it's rigged hide your money under a mattress and let inflation destroy it. the only thing that is rigged is the social security system and taxes lol."

     

    You are in La La land.
    11 Feb 2013, 10:57 AM Reply Like
  • stevereid
    , contributor
    Comments (30) | Send Message
     
    HERE IS AN INVESTMENT STRATEGY FOR GOOG STOCK HOLDERS. AS GOOG DECLINES FROM IT'S ALL TIME HIGH, WHICH IS LIKELY, YOU CAN PURCHASE AAPL AS IT RISES FROM A ONE YEAR LOW (HIT TWO WEEK AGO). AT SOME POINT YOU WILL END UP WITH A 50/50 MIX OF THE STRONGEST TWO STOCKS IN THE TECH ARENA.
    8 Feb 2013, 09:53 PM Reply Like
  • aperture1
    , contributor
    Comments (186) | Send Message
     
    That's probably what Schmidt wants to do!
    8 Feb 2013, 11:35 PM Reply Like
  • gstanden
    , contributor
    Comments (343) | Send Message
     
    short it
    10 Feb 2013, 12:44 AM Reply Like
  • rungrandpa
    , contributor
    Comments (211) | Send Message
     
    MSFT, INTC, GOOG
    8 Feb 2013, 10:52 PM Reply Like
  • rdmill
    , contributor
    Comments (140) | Send Message
     
    Google has clearly replaced Apple as the most important Tech company in America. Schmidt will sell into strength. Both Apple and Google should do well this year. Apple as a leading values stock (especially if managment embarks on a raising-the-dividend program) and Google as the leader in the growth pack. Deep in the money 2015 Leaps is an effriceint way to own both stocks. Sell monthly calls on them 25 -50 points above current monthly price. You will make some nice ca-ching on the way up. Just my suggestions. rdmill
    9 Feb 2013, 07:48 AM Reply Like
  • sometimes
    , contributor
    Comments (202) | Send Message
     
    I hold DITM leaps on AAPL, but GOOG?

     

    GOOG has limited geographical expansion potential (BIDU). They already dominate desktop search domestically- not much more room to expand there. And cost per click is coming down.

     

    On top of that, GOOG is trading at about 24x trailing earnings... Growth is already priced in.

     

    I don't see GOOG as a high probability play here.

     

    AAPL, on the other hand, has geographic expansion potential (China), growing market share potential (smartphones), growing market potential (iPads)... and all that for less than 11 times trailing earnings. With a dividend? And strong share buyback program?

     

    AAPL, yes. GOOG, no. IMO
    9 Feb 2013, 11:49 AM Reply Like
  • Cameron Reed
    , contributor
    Comments (67) | Send Message
     
    Schmidt selling stock doesn't change the business case for Google one bit.

     

    Google is trading at a market forward multiple. So investors believe that Google's core business search and display ads will *NOT* grow any faster than the average company. Is that realistic?

     

    More over investors are assign a value to Youtube, ChromeOS, Docs, and their more speculative investments of exactly ZERO. These business are just starting out, isn't it more realistic that they will be able to earn at least some money?

     

    On top of that I've seen Gartner reports from about a year ago that said that Android market share would top out < 50% in 2015. They already have 70% of smartphone (54% of total phones).
    9 Feb 2013, 09:24 AM Reply Like
  • recession12
    , contributor
    Comments (170) | Send Message
     
    If an insider is selling the majority of his stock why should you buy? If aapl starts a search company it will be a problem for google
    9 Feb 2013, 11:33 AM Reply Like
  • bondstevenbond
    , contributor
    Comments (163) | Send Message
     
    So long as both GOOG and AAPL have dominant OS's they will continue to have tremendous power over other tech players across traditional PC and mobile markets. To quote Donald Knuth, "Software is hard".
    9 Feb 2013, 12:10 PM Reply Like
  • Connermalrose
    , contributor
    Comments (118) | Send Message
     
    well i wouuld say it is smart on his part to at least take some of his chips off the table. look at. bill gates he owned and still. ownns a big stake inn. microsoft buut his capital growth there is very limited annd. u cann see this when u track his wealth over the years. the. point is soonner or later uu have to puut. capital. somewere else so nnot all. youur eggs r inn onne basket
    9 Feb 2013, 01:46 PM Reply Like
  • grigio vespa
    , contributor
    Comments (2) | Send Message
     
    $2.5 BILLION, amazing!!!!
    10 Feb 2013, 10:25 AM Reply Like
  • Joseph Poma
    , contributor
    Comments (437) | Send Message
     
    Stupid reason to see the stock sell off 6+ points. Nothing has changed fundamentally about Google except for the fear factor. Fear that the CEO's selling is a signal that the stock "might" be at a top. IMHO GOOG is a buy on the dip.
    11 Feb 2013, 09:16 AM Reply Like
  • gmmpa
    , contributor
    Comments (484) | Send Message
     
    Companies that do not pay dividends and trade side ways for years are worthless investments for retail investors. These companies only exist for the convenience of the principles of the company to cash out at the expense of the capital markets and stupid investors. However, It can benefit the traders if the trading range is large and consistent enough to play the game. To this extent the game is not rigged. It is the rules of the game. For the stupid investor the game seems rigged. The smart investors don't play this game. They move one.

     

    Management of growth companies MUST see to it that the stock price continues to go higher for shareholders. This is the point of the game. When it becomes a piggy bank for Senior Management it is time to get out. I am still long Google. I still believe in Google's management to keep Google a player in the coming changes in the future growth in technology sector. Otherwise I am gone!
    12 Feb 2013, 09:42 AM Reply Like
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