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HeartMan

HeartMan
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  • Google: Early Thoughts On The Split [View article]
    When the split was first announced, Google was sued. The lawsuit was settled with an agreement that class C shareholders will be compensated, according to a formula, depending on how much lower the Google Class C share price is compared to the Google Class A share price. When the author keeps saying "they will have to compensate C holders" he is referring to the lawsuit settlement.
    Apr 14 02:32 AM | 1 Like Like |Link to Comment
  • Google: Even Rock Stars Get Haircuts [View article]
    "When was the last time you heard an activist investor agitating on Google?"

    That's why there are two classes of stock A with one vote each, and B with ten votes each. The B shares are owned by Larry and Sergey (and maybe Eric has some left). They have an iron grip on the company. Larry is so intent on keeping his vice grip, he pushed through new Class C shares that have absolutely no voting rights. There have been plenty of question marks about Google, remember Motorola? Plenty of other questions about capex, hiring, and on and on. The only difference is analysts raise these questions because investors are muted from activism.
    Mar 11 10:07 PM | 1 Like Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    They have a right to convert them 1:1. I'm sure there is a transmittal form they must sign and send into the stock registrar to effect the change, which is done digitally.
    Mar 7 07:22 PM | Likes Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    This has nothing to do with giving investors a chance to get in at a better price. The explicit drive for this is that Larry is concerned that as more and more Class A shares get issued, his control of the company will be diluted. To stop this dilution, he's concocted a new class of non-voting shares.
    Mar 7 07:16 PM | 1 Like Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    Goog B shares are not publicly traded. The founders own them (and maybe Eric, but I'm not sure). B shares must be converted to A shares (on a 1:1 basis) before they can be sold.
    Mar 7 07:14 PM | Likes Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    Yes. This is explicitly stated. Employee stock compensation will be in C shares as well.
    Mar 7 09:29 AM | Likes Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    hbn, if you own 100 shares of current GOOG at 1200, you own $120,000 of Google stock.
    Right on the split, you will own 100 shares of GOOG at $600 ($60,000) and 100 shares of GOOGL at $600 ($60,000) for a total investment of $120,000 of Google stock.
    Mar 6 01:54 PM | Likes Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    docs, we'll see. S&P is going to drop the Class A shares from the 500 index and include only the Class C. Indices will have to unload their voting shares for the non-voting shares.
    Countervailing this, how many mutual funds have a requirement limiting them to owning shares in publicly traded companies which shares have voting rights? This may be so obscure as to be irrelevant, but who would imagine this scenario?
    Larry is the force behind this move. While he is brilliant in his area of expertise, he certainly has had his share of ideas that flop. If this concoction of voting A shares, super voting B shares, and non-voting C shares turns out to be a flop, it will be because of unforeseen market consequences related to ownership requirements.
    If things get too hairy, I suppose the board could vote to give all C shares voting rights (perhaps each share could have 3/5th of a vote). Or maybe they'll get tired of having pesky shareholders attempting to hold them accountable and they'll start buying back all the A shares, so that the only shares with voting rights will be B shares.
    This has the potential to be a very wild ride before equilibrium is reached. Is it worth it? I don't know, but I'll hang on.
    Mar 6 12:53 PM | 2 Likes Like |Link to Comment
  • Google's Out-Of-The-Box Stock Split, And More [View article]
    You'll have 10 of the new Goog C class (GOOG) and 10 of the Goog A class (GOOGL)
    Mar 6 12:24 PM | 5 Likes Like |Link to Comment
  • Chesapeake Energy Corporation declares $0.0875 dividend [View news story]
    Lucky to get anything and the co. isn't bankrupt.
    Dec 16 07:19 PM | Likes Like |Link to Comment
  • NQ Mobile - Another Opportunity Following A Bear Raid [View article]
    Thank you for this link.
    Nov 20 09:41 PM | Likes Like |Link to Comment
  • NQ's U.S. Veneer: Withholding Facts, Conned Men And A Convicted Racketeer [View article]
    Invoking Justin Bieber? Class act.
    Nov 12 11:17 AM | 12 Likes Like |Link to Comment
  • Insiders Are Selling Apple [View article]
    By the time I got to your comment, it was too late. Do you have a blog where you link SA articles worth reading? Or is that a null set?
    Nov 8 08:10 PM | 2 Likes Like |Link to Comment
  • American Capital Agency: More Downside Due To Falling Distributions, Leverage And Interest Volatility [View article]
    I try not to go out more than 20 to 50 days (Sosnoff's team over at TastyTrade conducted a study and determined the optimal time to be 45 days). By keeping the expiration dates to one or two months out, one maximizes the amount or revenue received from theta decay. In addition, I find it easier to adjust shorter term options than longer dated ones.
    With 50,000 shares I would consult someone with extensive options experience and develop a plan for managing an options strategy. For example I would consider writing contracts at the money, in the money, and out of the money, with different expiration dates. This type of incremental approach would significantly boost yield, provide downside protection, and allow the flexibility to defend shares against being called away should the price pop and one wanted to keep the full position.
    Sep 8 12:49 PM | 1 Like Like |Link to Comment
  • American Capital Agency: More Downside Due To Falling Distributions, Leverage And Interest Volatility [View article]
    There is valid concern that the dividend ratio going higher will not compensate for the decrease in stock price. Why swap dividends for capital losses?
    I'm long AGNC and doing fine by continually writing calls against my long stock. Between the dividends and the premiums received, I have been able to stay well ahead of the decrease in stock price.
    Sep 8 03:19 AM | 1 Like Like |Link to Comment
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