| |
intelliot
Site Admin
Joined: 01 May 2004
18653.45 GC$
Items
|
 Posted: Sat Aug 28, 2004 3:48 pm Post subject: Google investors should 'sell' - analyst |
 |
|
|
| Quote: | August 27, 2004, 13:35 BST
Reuters
Janco Partners says Google's stock price is too high given its future prospects
Janco Partners on Thursday initiated coverage of Google with a "sell" rating and a target price of $76 (£42), saying while the world's No. 1 Web search provider's fundamentals are strong, its current stock valuation is too high.
Google, which debuted last week with an initial public offering price of $85, was up $1.65 at $107.65 in mid-day Nasdaq trade.
"The stock is currently priced for perfection," Janco Partners analyst Martin Pyykkonen said in a note to clients.
"We believe Google is strategically positioned well and has significant barriers to entry in terms of its underlying technology for search," he said, noting that Internet media company Yahoo is now Google's main competitor, both in terms of technology and brand recognition in search.
Nevertheless, Pyykkonen said Google needs to diversify its revenue base beyond paid search -- advertisements that are generated when users type in certain search terms -- and become more of a portal.
Paid search accounted for 98 percent of Google's revenues in the first half of 2004.
While Google has said it has no plans to become a portal, it has rolled out portal-like features including its Gmail email service and its Froogle comparison-shopping service. It also recently purchased Picasa, a digital photo-sharing and management provider.
Yahoo, Time Warner's AOL and MSN, the Internet unit of Microsoft, are all considered full-fledged portals.
Pyykkonen said other risks included post-IPO lock-up selling and the potential exercise of employee stock options that could flood the market with shares and substantially dilute earnings per share.
Institutional Shareholder Services, a proxy adviser firm, recently gave Google a poor ranking in corporate governance, in part for its plans to re-price options at will at any time, he added. |
|
|
| Back to top |
|
|
Sponsored Links
|
| Posted: 4 Dec 2008 2:16 am Post subject: Advertisements |
|
|
|
|
|
|
| Back to top |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Host your free forums with Invision Plus.net forum web hosting with your own subdomain.
alexisBlue v1.2 // Theme Created By: Andrew Charron // Icons in Part By: Travis Carden |
|
|
|
|
