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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (52680)	7/26/2004 6:21:37 PM
From: Rainy_Day_Woman	Read Replies (2) \| Respond to of 57110

is anybody going to google? ~Google, the king of search engines, announced some of the details of its upcoming initial public offering, which may take place at the end of the week. The company will sell about 14 million shares and other stockholders will offer an additional 10 million shares. The price will be determined in an auction process, but Google’s filing suggests that it will be between $108 and $135 per share. At this price, the IPO could raise $3.6 billion, of which $1.8 billion would go to the company. But the IPO would offer only about 10% of Google’s total stock, meaning that 90% would still be in the hands of insiders. The total market capitalization of the company would be about $36 billion, almost equal to Yahoo’s $37 billion. And note that at these prices, Google’s price-to-earnings ratio will be about 112 to 1. Beware: This is a very high multiple and the company is facing increasing competition from some of the tech world’s heavyweights, including Yahoo. Also, most stocks sell below their opening day prices one year after their IPO. The ticker may be GOOG, but it wouldn’t be far off to think RISK.