| Stock (Symbol) | Stock Price | |
Google (GOOGL) |
$530 |
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| Data is as of | Expected to Report | Sector |
February 6, 2015 |
Apr 14 – Apr 20 |
Technology |
| Sharek’s Take | ||
 For the 3rd qtr in a row, Google (GOOGL) disappointed its investors. First it was an 18 cent miss, then 19 cents and last qtr 34 cents. Along the way Annual Profit Estimates have dropped 10%. Now profit growth is expected to average just 10% during the next 3 qtrs, that is if the company doesn’t miss. When Google dumped the notoriously unprofitable Motorola a year ago, I thought profits would spike more than 20%, but that hasn’t happened. And honestly, I don’t think management cares because it doesn’t buy back stock or pay a dividend. It just invests. In things that aren’t paying off the way they should. Furthermore, the stock’s fairly valued. I’m going to sell my Google shares once again as I feel this stock is an undependable 12% to 15% grower selling for 18-19 times earnings. |
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| One-Year Chart | ||
 There’s just one quarter here that looks good, the +27% one 3QtrsAgo. And look at Estimates. Maybe 10% profit growth coming but maybe GOOGL misses again? The only good thing is Annual Profits went up every year. |
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| Earnings Table | ||
 Revenue growth rose just 7% because the company had Motorola sales in there last year. Profit growth was 14%, but I thought it would be more than 20% by now.GOOG missed by 34 cents, and I bet it could have beaten if it really wanted to.Annual Profit Estimates continue to erode. Quarterly estimates are poor — and deteriorating. |
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| Fair Value | ||
 Today is February 12th and GOOGL is selling for $547. It’s around 10% away from its 2016 Fair Value. I’m not hanging around a year to make 10%. Plus, the company could continue to lower estimates which brings down the Fair Value. |
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| Ten-Year Chart | ||
 This company has had one good year in the last four, and that faked-me-out into buying back in. I should have stayed away, the glory days are gone. Its like dating the pretty girl from high school now. She’s different. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
Google is up almost $10 today and I’m using the strength to sell. This is a 15% grower in my eyes, and its selling for what is now 19x profits. I see the stock rising, but in these accounts we are looking for more growth (and upside potential). |
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Aggressive Growth Portfolio
N/A |
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