mbogosi

Google / YouTube - Best M & A Ever?

I like to comment on how everybody toots their horn about how expensive youtube was. However, you bring up that they paid for it with stock when their stock was near epic prices. In reality, this effectively made the deal infinitely more valuable.

The Lazy Guide to Delta Hedging

Yeah, I've been doing that for some time now. Started meddling with naked calls (1 contract, 2 contracts)... Now I'm trying out bull call spreads. Going back to your article though, I'm nervous about getting into delta hedging because of the transaction fees. On small trades it could very easily eat up all the profits before I get to see anything at the end of the trade. I understand the purpose of delta hedging is take advantage of increase(decrease) of volatility in a stock rather than price action. Any suggestions on what my next progression should be? I started with a 10k portfolio and its been creeping up slowly...

The Lazy Guide to Delta Hedging

Say what if I told you I've read Natenberg and some other various literature on the topic of Options trading. I just picked up the book you mentioned in your article. I've been studying options heavily and really would like to trading a career. How would be the best way to get some practical experience trading options and use some of the skills I've learned?

Google Fails to File Chrome OS with SEC

For heavens sake! This is just the type of talk that gets everyones panties in a bunch. What if GOOG was just playing a time old technique of leading the competition in the wrong direction to assume they were going into OS... Does it really have an impact on share price? I don't think so...

The only thing that matters is earnings and multiples...

Who's Nibbling at OpenTable?

Looks like OPEN is a relatively solid business and will genenrate new business in the future. However, I agree with you that the current price is absurd and after all the VC's and rediculous speculators are washed out we'll have something in the range of 10-15$ stock. Once it reaches those levels, I would consider recomending a buy.

Four Tech Companies with Tremendous Balance Sheets

Stock price today is a reflection of expected future earnings. Google has developed into a relatively low volatility stock for a reason. Expected future cashflows are becoming harder to materialize into a premium when concurrently current operating free cash flows are becoming more concrete.

Moving forward however, Google has shown us many times it's ability to reinvent itself be bringing new an innovative updates to existing services they provide their users.

I agree, they are spending quite a bit on losing projects. This is however a price that many companies pay in their growth phase when approaching the end of a product life cycle. However, the debt structure of Google favors their ability jump on opportunities when they arise.

I look forward to what's in store for them!


On May 23 05:29 AM Nettligent wrote:

> Apple, Cisco, Google, and HQ are great companies with strong management,
> little or no debt, clean balance sheet, responsible company, excellent
> products and command a huge market share.
> This is my dilemma and could not get answer.
> Market expects these companies to grow and grow. It is reasonable
> expectation when these companies are young. They have done a great
> job.
> How can these companies beat Earning quarter after quarter, year
> after year, at their size for the next 5 years?.Impossible tasks.

6 Months Until Google Starts Delivering News Content Too

Greatest strength of this company is their brand. Google is not just a word it has become a verb in our world. A lot of their success has to do with clear and easy access to what people want.

I know for a fact that I jump to specific parts of my newspaper and completely disregard whole sections of it. If Google can show me that not only am I looking at exactly what I want to look at but it's quality journalism... I'm in!

As far as monetizing the news? The G-1 is going to set the stage for a revolution in this arena. I currently read WSJ on my blackberry because its there. If Google can do a better job of getting me what I want, I don't mind a banner here and there.

Advertisers will pay up for the opportunity to be front and center when I'm reading about something that is relevant to what they do. In my opinion, that sounds like another money making opportunity!

Google's Newspaper Content / Value Conundrum

I agree with a lot that was said about the struggle to monetize data distribution. I have a feeling this is a lot like Mutually Assured Destruction for anyone who attempts to hail a white flag and bring quality information to the masses in hopes of being paid for it.

The reality here is simple. The analogy I'll use to explain it has to do with selling products to consumers in retail. For example, Macy's used to be exclusive enough to sell their products for a premium and every so often (at random) offer a sale to clear off some inventory. That turned into sale every season which lead to customers getting comfortable with just waiting until the sale to purchase product. Long story short it was Macy's who destroyed its profitability by diluting the value of its brand.

Google or any other company that brings value should literally stop in its tracks and say "Hey you like streaming videos? Why not pay us $5 a month to have access to all of it"

Hell... I pay more for that for lunch in a day.

Google will outlast all of the competition if anyone tries to offer the service free and pay for the heavy cost of up keeping the bandwidth.

Youtube has a bright profitable future. In the long-term, cost of up keeping bandwidth will fall and ad-revenues will rise.