eRational Exuberance - Where There Is Smoke, There Is Fire; Lowering to Sell Scott W. Devitt (703) 392-4844 email@example.com Marla A. Block (703) 392-4033 firstname.lastname@example.org � We believe Google is an outstanding company; however, we believe its shares are overvalued. We are lowering our rating on Google shares to Sell from Hold based on four factors � (1) we have historically noted Google's excessive valuation but maintained a Hold due to continued momentum and positive sentiment, (2) sell side expectations and ratings have risen throughout 2005 to the point that we now believe will limit upside potential, (3) Yahoo!'s results last evening broke the sector momentum and sentiment which should now force investors to focus more on what these businesses are worth rather than where the stocks may be going, and (4) unsustainable PPC pricing.
As of yesterday's close, Google had an enterprise value approaching 3x that of Yahoo!. In after hours trading, Yahoo! was down 12% and Google was down 3%, further widening the gap. We are comfortable in our belief that Google is not worth three times Yahoo!. Also, we are uncertain as to a fair value for Google; however, we are comfortable believing it is well below $142 billion (307 million fully diluted shares * $465).
this asshole is going from a hold ( always means a sell in wall st terms ) to a sell.............so what changed he always was a sell ........jerk trying to make a onetime call to make his career ..Hell who ever heard of his company .....Yahoo misssed numbers so smoke means fire .ok ......then that applies to every sector .......This jerk isnt consistent !GM has smoke so sell toyota or Nissan or Mercedes ,,,,,,,,,,,,Asshole never had a buy on google only hold .means he never had a buy on google so now after being wrong for so long trying to make a name .cant stand jerkoffs imho like him NO BALLSSSSSSSSSSSSSS lou .