Google founders to offload 14 million shares

newsguy · 11-21-2004, 07:20 AM

http://www.abc.net.au/news/newsitems...1/s1248082.htm

More shares being issued. More $ for Google!

SN3 · 11-21-2004, 10:56 AM

More money for Google.

Exactly.

arius · 11-22-2004, 08:46 PM

Call me cynical but I believe that people never sell anything of real value.
If it was really valuable they would keep it for themselves. The value of this stock is about to tank. They are cashing in before it bottoms out.

Geert C. · 11-23-2004, 02:18 AM

I agree with Arius. They are just cashing just in case ...

Papadoc · 11-23-2004, 09:59 PM

Quote:

Originally Posted by arius

Call me cynical but I believe that people never sell anything of real value.
If it was really valuable they would keep it for themselves. The value of this stock is about to tank. They are cashing in before it bottoms out.

Pure speculation and without any idea what you are talking about and just plain wrong. Read the article again and learn a little here. This isn't pawning your daddy's watch. It's billions of $$$. The talk is about the next 18 months. If the stock was about to tank, then these guys are BIG losers.

Every developed country has it's own version of the SEC that governs actions of those in the know of major corporations and how their principals sell their personal stock. In the US, trading based on information that you privately know is called insider trading and it's illegal. As principals, there are required notices that must be filed with the SEC, they must be approved, and there is a waiting period. When the stock does sell, it is sold at market price. So the one thing you can be sure of is that these people want to see the price go UP.

dave conz · 11-28-2004, 03:24 PM

Quote:

Originally Posted by arius

Call me cynical but I believe that people never sell anything of real value. If it was really valuable they would keep it for themselves.

Not so sure about this. You'd like to think these guys were smarter than your average bear but I also think there's an "instant gratification" element which is pervading our cultures and overiding intellegent decisions.

A while ago our local power company gave free shares to all its customers. Although financial advisers strongly and loudly advised everyone to keep the valuable shares, a staggering 80% of recipients sold them immediately and lost the predicted 100% gain over the next year.

People want rewards now, not later.

arius · 11-24-2004, 02:06 PM

If the stock were going to go up, wouldn't they wait for the next sales period and sell then? They know that they will not hit their guidance. Just wait and see. It's got a P/E of 209.81. That is considered way above average. This stock is over valued and due for a massive correction. The owners know it too and that's why they are selling at the first opportunity. This stock will never see these valuations levels again.

Papadoc · 11-26-2004, 10:36 AM

No. You do not understand SEC rules in the U.S. A principal of a publically traded company cannot just sell his shares of stock in his own company whenever he wants. He MUST file with the SEC far in advance, give adequate public notice and then wait. This is to prevent the kind of manipulation that you think must certainly be going on.

My bust... I assumed you actually read the article but just didn't know the technical aspects. Evidently you did not read it at all before you offered your opinion on it, or you would know that he will not be able to consumate the sale for 12-18 months. Therefore, he wouldn't be selling it "next period", whatever the heck that means.

Plus, you have zero idea what is being sold. These could be options that will expire and he would just lose them entirely. But no... you just know from one tiny little fact that a multi-billion dollar company must be going down the drain. Get real dude, C-levels buy and sell stock all the time. It doesn't mean that the bottom will drop out.

Yes, the company could go down. But never take your stock tips from whether an exec places notices to sell his stock a year from now.

arius · 11-27-2004, 10:00 AM

Quote:

Originally Posted by Papadoc

My bust... I assumed you actually read the article but just didn't know the technical aspects. Evidently you did not read it at all before you offered your opinion on it, or you would know that he will not be able to consumate the sale for 12-18 months. Therefore, he wouldn't be selling it "next period", whatever the heck that means.

Well if anyone is curious they can check the insider trading activity.

To me it looks like everybody from top to bottom is cashing out. Do you really think Google stock valuations are sustainable? What restrictions are imposed on Page and Brin by the SEC?

Ledfish · 11-27-2004, 10:47 PM

[QUOTE=arius]Well if anyone is curious they can check the insider trading activity.
QUOTE]

Wow, look at all the employees selling their stock. However I would too. After all, think how many people wished they had sold before the last tech stock bust. Most would have been set for life if they had just sold some of their stock.

Personally tho, I think that Google stock is way overvalued and that it will tank here shortly. But as I said, I don't think all the selling by so called insiders is an indicator of anything other than not be so foolish and thinking it will last forever.

Dave Hawley · 11-28-2004, 01:55 AM

Nobody can know when a stock is about to peak or crash and that's a fact.

If Google employees are selling it really is unlikely to mean very much. They are likely selling to take a quick profit and maybe they are the prudent ones or over cautious ones. Only time will tell. Either way though, a profit is not a profit until it's in the bank and eager sellers often make the best investors.

Dave Hawley · 11-28-2004, 01:57 AM

BTW, it's insider transaction activity not "insider trading activity". The latter is illegal.

Dave Hawley · 11-28-2004, 08:09 PM

Quote:

People want rewards now, not later.

Agree! However, it really a case of people want proven rewards now, not speculated rewards later. IMO, these are often the best at turning the most profit.

arius · 11-29-2004, 11:13 AM

Did you notice that one Director that cashed out to the tune of:
17-Nov-04 D, L JOHN
Director 5,780,387 Disposition (Non Open Market) at $172.545 per share. $997,376,874

Ugg!!
Talk about money for nuthin.
I just can't believe the hype around this stock.
People who don't work in the high tech industry really don't know how to evaluate tech companies. What could Google actually sell to generate that kind of revenue?
Actually if they could get a $1.25 from every internet user (estimated at 800,000,000 users) They could hit that value I guess. What percentage of internet users have web sites? Man I wish I was a Google employee right about now!

Dave Hawley · 11-29-2004, 08:56 PM

Lucky bugger! Just goes to show that you should 'sell when everyone else is buying and buy when everyone else is selling'.

arius · 12-02-2004, 07:16 AM

What do you predict for a Google Share price 1 year from now?

Dave Hawley · 12-02-2004, 06:27 PM

Quote:

What do you predict for a Google Share price 1 year from now?

Different than it is today

arius · 12-03-2004, 09:59 AM

OK for the record here is my prediction. (Wild guess really) $49.90 per share after a reverse split. I'll check back next year to see how close I was.

Papadoc · 12-03-2004, 12:20 PM

Well WOW! I guess those wall street watchers are just pretty much clueless. I wonder why 2 are at Strong Buy, 11 are at Buy, 9 are at hold, 2 are at Sell, and NOBODY is at Strong Sell. I guess they just haven't seen this thread.

You have no idea what you are looking at. Automatic sells are uncontrollable. They are in there by contract and/or the SEC may have required these at some time in the past. Planned sales happen for a variety of reason, not the least of which is to take advantage of options that may expire. Sorry, that's about as simple as it gets and I cannot explain it any further. If you are still of the mindset the "Doh... buy means good and sell means baaaad", I just cannot help you.

Hmmm. Just wondering how your idea of things collapsing fits with the Director John Doerr (who also sold), also buying about 8 million shares. "AHHH... buy means gooood".

Dave Hawley · 12-03-2004, 06:46 PM

Papadoc, arius was having a go at a prediction. Not sure what you are getting all worked up about? If arius is correct, it would certainly not be the first time the Wall Street gurus have got it wrong.

BTW, Automatic sells are not uncontrollable as they have to have been placed in the first place.