Trader Mike

Duru and I were trippin’ off of Google being around $150 (without us!). We both talked about buying it a few weeks ago but both passed. He wanted to try it just after it tested the $100 level. I considered buying it as it took out its all-time high at $113.50. I’ve mentioned here several times that I like to wait for an IPO to make a base and then buy it once it makes a new high. (I made a killing doing that over & over back in the day.) That’s exactly what GOOG did, but I passed on it because I thought the base was too short. Silly me!

On …

The way Google’s IPO went down is just foul in my view. The way I see it is that the Wall Street crew just wanted in at a discount to fair value so they talked the valuation down. Now there have been three price targets put on the stock that are within the original $108 - $135 range.

Yesterday we had this:

GOOG Google: ThinkEquity starts coverage of today’s IPO with a Buy and $120 price tgt.. deal priced at $85

And today we get this:

Google started with a Hold at Amtech (GOOG) 101.91 +1.57 : — Update — AmTech initiates GOOG with Hold and views fair value for GOOG at $110. Thus, firm believes the shares could trade higher …

SearchBlog has pulled out some key points from Henry Blodget’s (remember him?!?! lol…) Slate article ‘Gambling on Google‘. FWIW, Blodget basically agrees with what I’ve said about this IPO — I’d rather wait until it’s traded for a while before messing with it.

Google has filed their S-1 with the SEC. Briefing.com just posted the following (emphasis is theirs… and you’ve gotta love the 14:42 note):

14:42 Market moves to lows of day; hearing large seller of S&Ps

Traders also talking about the ‘deflationary impact’ of the Google IPO auction process, saying that an efficient market doesn’t work well in their line of work.

14:17 Google bidding process

S-1 says: We plan to conduct this auction in five stages-Qualification; Bidding; Auction Closing; Pricing; and Allocation… When the preliminary prospectus becomes available, you will be able to obtain a unique bidder ID from a web site. Approximately x days after the date on the cover of this prospectus, all …

I just got received an e-mail asking what I think about Google’s IPO. I thought I’d answer it here because with all the hype the IPO is receiving, I’m sure many people have the same question. (And besides, I need something to blog about during this boring week.)

Bambi Francisco wrote a piece about the Google’s IPO in which she made a lot of great points about relative valuation and the increasing supply of internet stocks. I think she did a great job in covering all of that stuff, so I won’t bother talking about those issues.

My concern with this IPO is that it’s over-hyped and the little guy will …

There’s more Google IPO talk this morning, coming out of the article I linked to yesterday. From Briefing.com:

07:49 ET Google Plays : CBS MarketWatch running a story speculating what Google would do with IPO cash. One individual interviewed for the story thinks Google would need to strengthen its technology with a purchase of a company like Akamai (AKAM). Or Google could use cash to help compete with larger rivals such as Yahoo! and Microsoft, which may be looking to make acquisitions of their own. According to article, many observers believe Yahoo might buy Google’s top rival in the paid-search business, Overture (OVER), or that Microsoft might bid for LookSmart (LOOK).

Let’s see how these stocks move today…