| Stock (Symbol) | Stock Price | |
Google (GOOG) |
$681 |
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| Data is as of | Expected to Report | Sector |
November 5, 2012 |
Jan 18 |
Technology |
| Sharek’s Take | ||
 I’m going to sell Google (GOOG) from the Growth Portfolio. I should have sold the stock when it was around $750 last quarter. In last quarter’s research report you can see I didn’t even like the stock. But I held GOOG through earnings and then it dropped from $755 to $695 the day it reported. In reality, we’re still getting out only 10% lower, so I’m beating myself up a bit. You can’t sell at the highs until you know what the highs were. I still with I had gotten out earlier.
The Earnings Table is flooded with red. The company missed badly last quarter (due to that stupid acquisition, Motorola Mobility). Estimates just got slashed. Profit growth even went negative last quarter. This isn’t the type of stock I hold, I’m out. |
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| One-Year Chart | ||
 I didn’t like GOOG last quarter, but then it was $629 and now we’re getting out around $680 so that’s still a positive ($750 would be better). The estimated Long Term Growth Rate just fell from 16 to 13. -7% profit growth last quarter? Whew. Estimates look sucky. |
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| Earnings Table | ||
 Revenue surged 50% last quarter! So how did profits fall 7%? Mismanaged business.
Google missed by one hundred fifty six cents. Yikes. The company has now missed in each of the last four quarters. Annual Profit Estimates show each year’s estimate dropped by around three bucks. Quarterly estimates are in red — and falling. GOOG has been missing so we can’t trust even these numbers. |
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| Fair Value | ||
 The stock is within 2% of its 2013 Fair Value. And estimates are declining — this may be too optimistic. |
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| Ten-Year Chart | ||
 The 10% profit growth expected this year sticks out like a sore thumb. That’s not good at all. Ten percent profit growth? Ugh. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
The fundamentals look bad. This is nowhere near a top twenty growth stock. I will sell Google from the Growth Portfolio.
I think management doesn’t give a hoot about shareholders. Revenue will likely climb from $29 billion last year to $41 billion this year yet profits will only rise 10%? Bad. |
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Aggressive Growth Portfolio
N/A |
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