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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: Jim Willie CB who wrote (53659)8/19/2004 11:05:56 PM
From: stockman_scott  Respond to of 89467
 
Insiders Get Rich Through IPO
______________________________

Founders Each Make $41 Million, Are Worth About $3.8 Billion

By Terence O'Hara
Washington Post Staff Writer
Friday, August 20, 2004

Google's Wednesday initial public offering, despite its failure to price as high or sell as many shares as the company had hoped, still made a host of existing stockholders instant millionaires and billionaires.

About a dozen insiders as well as friends, family and some folks just lucky enough to be in the right place at the right time sold portions of their Google holdings for a total of more than $464 million.

The biggest individual winners are the top three executives, Larry Page, Sergey Brin and Eric Schmidt. Co-founders Page and Brin each sold about $41 million of their Google stock in the IPO. Yet that was just a tiny fraction of their total Google holdings, which at yesterday's closing price were worth about $3.8 billion each. Schmidt, whom Brin and Page hired as their chief executive in 2001, sold $31 million of his stock, but still holds shares worth more than $1.4 billion.

Among the other early Google investors who hit the paper jackpot in the IPO were Andreas Bechtolsheim, a co-founder of Sun Microsystems Inc., who invested $100,000 in 1998 before the company was even formally organized. His stake is worth $326 million. He sold about $31 million of his stock in the offering. Computer science professor David Cheriton, Page's and Brin's mentor at Stanford University, is worth $307 million. He sold about $29 million worth of his stock in the offering.

A pair of companies, chief competitor Yahoo Inc. and Dulles-based America Online Inc., are also big shareholders as a result of early business dealings with Google. Yahoo sold $137 million in the offering and kept stock worth $661 million. America Online sold $78.9 million worth of stock in the IPO and kept $653.1 million worth.

Among the smaller individual investors listed in the IPO prospectus is Roger Ebert, the Chicago film critic, who sold $171,615 of his Google stock in the deal and held on to shares worth $1.8 million.

These and other early investors in Google have already made money, having bought stock for under $10 a share. A large portion of the shares sold by existing shareholders in the IPO were originally bought for less than $1 a share in the form of convertible preferred stock or stock options.

There are initial restrictions on insider sales following Wednesday's offering, but all told existing shareholders and employees will have permission to sell more than 260 million Google shares once all the restrictions lapse over the next six months.

The ultimate value realized for their holdings will depend on their decisions about when and how much stock to sell. Just as the stock shot up yesterday, it could go down in the future. Flooding the market with shares would drive down the price of the stock and by extension the value of the fortunes of stockholders such as Brin and Page or Google employees. The company has more than 12.7 million shares pledged as options to employees, with an average exercise price of less than $3 a share.

Decisions about sales are particularly significant for the pair of Silicon Valley venture firms that were the primary financial backers of Google in the few years following its 1998 founding. Kleiner Perkins Caufield & Byers and Sequoia Capital own 21 million and 23.9 million shares, respectively, stakes now valued on paper at more than $2 billion each.

When Google first filed for the IPO, both firms planned to sell about 10 percent of their stakes. But when investors balked at the initial pricing range, both decided not to sell any shares now. The test will be how judiciously they can sell their stakes in the coming months and years to both maximize their profit and not depress Google's stock price unduly.

"Venture capital firms by definition are private equity firms, so they don't hold on to public company stocks," said Don Rainey, a partner in North Carolina's Intersouth Partners, a technology venture fund.

But it can take time to successfully cash in. One of the most successful single venture investments of recent years was Carlyle Group's December 2001 public offering of United Defense Industries Inc. Carlyle netted more than $1 billion for its investors in that deal. Carlyle sold its last block of United Defense stock this spring.

In venture capital terms, Google's IPO is a "liquidity event," and to a venture investor there is nothing sweeter. "Any big liquidity event is usually a very satisfying event that comes after a long period of hard work," Rainey said. "Most [venture investors] that have been through it think they earned it."

© 2004 The Washington Post Company

washingtonpost.com



To: Jim Willie CB who wrote (53659)8/20/2004 10:34:53 AM
From: stockman_scott  Read Replies (1) | Respond to of 89467
 
Oil's new high may persist

csmonitor.com



To: Jim Willie CB who wrote (53659)8/23/2004 9:18:42 AM
From: stockman_scott  Respond to of 89467
 
Writing on wall for another one-term Bush
__________________________

By Andrew Sullivan

August 23, 2004

IN Washington, some of the icons are well known to the public and some retain almost guru-like status among the cognoscenti and are content to have their fame restricted to a few blocks around the White House. One such nerdy eminence is Charlie Cook, of the wonkish but often indispensable National Journal.

Cook knows polls and districts and congressional races the way a sea-fisherman knows tides and currents and shoals. And so, in a relatively becalmed August, the big news was that Cook made a simple call on the presidential race. He says the election is John Kerry's to lose.

But isn't it neck and neck? Aren't the national polls dead even? Aren't we forever being told that the US is a 50-50 nation and nobody is likely to break from the pack? And didn't Kerry get the most anaemic bounce from his convention in many a year?

All of the above may be true. And next week's Republican convention will surely give George W. Bush a fillip. But it's equally true that the fundamentals in this race - and its direction - seem to be favouring the Democratic challenger, and that the US President is fast running out of ways to reverse the trend.

This is how Cook sees it: "Bush must have a change in the dynamics and the fundamentals of this race if he is to win a second term. The sluggishly recovering economy and renewed violence in Iraq don't seem likely to positively affect this race, but something needs to happen.

"It is unlikely Bush will get much more than one-fourth of the undecided vote, and if that is the case, he will need to be walking into election day with a clear lead of perhaps three percentage points.

"This election is certainly not over, but for me it will be a matter of watching for events or circumstances that will fundamentally change the existing equation - one that for now favours a challenger over an incumbent."

Now look at the numbers. In almost every poll Kerry has a lead of around four points or so. In almost every swing state, Kerry has a small advantage that is just outside the margin of error. Bush isn't clearly ahead in a single one of the critical states. He's even behind in conservative New Hampshire, and only just ahead in North Carolina.

A majority of voters in every national poll say the US is headed in the wrong direction. Unsurprisingly, a majority also say it's time for someone new in the White House.

And when you look at more localised polls in, say, Florida, you find Kerry opening up a small but resilient lead: 47 per cent to 42 per cent, compared with a dead heat in late June.

The issues? Bush's sole source of strength is that the public still supports him in the war on terrorism and, as another poll showed last week, that matters to a lot of voters. But in May Bush enjoyed a 19-point lead on the terror issue. Now he's ahead by 10.

On Iraq alone the race is even. On the economy, Bush is way behind. Ditto on healthcare. In fact, on every domestic political issue Kerry has a bigger lead today than he did in May. He may be boring, and his progress may be slow. But it seems unrelenting.

When the candidates are appealing to their base voters, Bush does relatively well as a decisive, strong leader on national security. He has the support of 86 per cent of Republicans compared with Kerry's support among 79 per cent of Democrats. But among independent voters - who make up the lion's share of the undecided vote at this point - it's a different story.

When polling firm Zogby analysed independent voters' concerns it found them looking a lot like Democrats: the economy has been the top issue for independents all year, with the war in Iraq in second place, the war on terrorism third, then healthcare.

No surprise then that when the undecided are pushed to say who they are leaning towards, Kerry leads by 49 per cent to 31 per cent.

Add it up. Kerry is now ahead by a few points. Of the votes still up for grabs, he looks to win almost twice as many as Bush will. And that fits with the usual expectation that incumbents tend not to win over undecided voters in the last stages of a campaign. More over, Kerry's Bush-hating supporters seem more motivated than Bush's. Kerry's lead in the blue states (the ones Al Gore won last time) is 17 points. Bush's lead in the red states that he won in 2000 is now only six points.

How the President turns this around is not easy to see. He can try to rev up his conservative base further - by proposing state constitutional amendments to ban gay marriage in evenly matched Ohio, for example.

He can put his more popular wife out there more and more to soften his image. At his convention he can parade social liberals such as Vietnam hero John McCain and California Governor Arnold Schwarzenegger.

Then there's the option of smearing and attacking Kerry. Last week saw the airing of a scurrilous advertisement by disaffected Vietnam veterans calling Kerry a liar. But none of these add up to a coherent strategy.

Maybe he'll be lucky again. His fate is tied to events outside his control - the crisis in Najaf, the paltry job gains three years into a recovery - but it might also be rescued by them.

A new al-Qa'ida attack might rally the country behind him; Kerry may implode in a Gore-like huff of condescension in the televised debates; war may break out with Iran; Afghanistan might have successful elections; Iraqi President Iyad Allawi may turn out to have more staying power.

When the race is still relatively close you'd be foolish to rule anything out now. But if Bush maintains his current posture and strategy it's only a matter of time before he follows his dad into first-term oblivion.

The Sunday Times

Writing on wall for another one-term Bush
__________________________
By Andrew Sullivan

August 23, 2004

IN Washington, some of the icons are well known to the public and some retain almost guru-like status among the cognoscenti and are content to have their fame restricted to a few blocks around the White House. One such nerdy eminence is Charlie Cook, of the wonkish but often indispensable National Journal.

Cook knows polls and districts and congressional races the way a sea-fisherman knows tides and currents and shoals. And so, in a relatively becalmed August, the big news was that Cook made a simple call on the presidential race. He says the election is John Kerry's to lose.

But isn't it neck and neck? Aren't the national polls dead even? Aren't we forever being told that the US is a 50-50 nation and nobody is likely to break from the pack? And didn't Kerry get the most anaemic bounce from his convention in many a year?

All of the above may be true. And next week's Republican convention will surely give George W. Bush a fillip. But it's equally true that the fundamentals in this race - and its direction - seem to be favouring the Democratic challenger, and that the US President is fast running out of ways to reverse the trend.

This is how Cook sees it: "Bush must have a change in the dynamics and the fundamentals of this race if he is to win a second term. The sluggishly recovering economy and renewed violence in Iraq don't seem likely to positively affect this race, but something needs to happen.

"It is unlikely Bush will get much more than one-fourth of the undecided vote, and if that is the case, he will need to be walking into election day with a clear lead of perhaps three percentage points.

"This election is certainly not over, but for me it will be a matter of watching for events or circumstances that will fundamentally change the existing equation - one that for now favours a challenger over an incumbent."

Now look at the numbers. In almost every poll Kerry has a lead of around four points or so. In almost every swing state, Kerry has a small advantage that is just outside the margin of error. Bush isn't clearly ahead in a single one of the critical states. He's even behind in conservative New Hampshire, and only just ahead in North Carolina.

A majority of voters in every national poll say the US is headed in the wrong direction. Unsurprisingly, a majority also say it's time for someone new in the White House.

And when you look at more localised polls in, say, Florida, you find Kerry opening up a small but resilient lead: 47 per cent to 42 per cent, compared with a dead heat in late June.

The issues? Bush's sole source of strength is that the public still supports him in the war on terrorism and, as another poll showed last week, that matters to a lot of voters. But in May Bush enjoyed a 19-point lead on the terror issue. Now he's ahead by 10.

On Iraq alone the race is even. On the economy, Bush is way behind. Ditto on healthcare. In fact, on every domestic political issue Kerry has a bigger lead today than he did in May. He may be boring, and his progress may be slow. But it seems unrelenting.

When the candidates are appealing to their base voters, Bush does relatively well as a decisive, strong leader on national security. He has the support of 86 per cent of Republicans compared with Kerry's support among 79 per cent of Democrats. But among independent voters - who make up the lion's share of the undecided vote at this point - it's a different story.

When polling firm Zogby analysed independent voters' concerns it found them looking a lot like Democrats: the economy has been the top issue for independents all year, with the war in Iraq in second place, the war on terrorism third, then healthcare.

No surprise then that when the undecided are pushed to say who they are leaning towards, Kerry leads by 49 per cent to 31 per cent.

Add it up. Kerry is now ahead by a few points. Of the votes still up for grabs, he looks to win almost twice as many as Bush will. And that fits with the usual expectation that incumbents tend not to win over undecided voters in the last stages of a campaign. More over, Kerry's Bush-hating supporters seem more motivated than Bush's. Kerry's lead in the blue states (the ones Al Gore won last time) is 17 points. Bush's lead in the red states that he won in 2000 is now only six points.

How the President turns this around is not easy to see. He can try to rev up his conservative base further - by proposing state constitutional amendments to ban gay marriage in evenly matched Ohio, for example.

He can put his more popular wife out there more and more to soften his image. At his convention he can parade social liberals such as Vietnam hero John McCain and California Governor Arnold Schwarzenegger.

Then there's the option of smearing and attacking Kerry. Last week saw the airing of a scurrilous advertisement by disaffected Vietnam veterans calling Kerry a liar. But none of these add up to a coherent strategy.

Maybe he'll be lucky again. His fate is tied to events outside his control - the crisis in Najaf, the paltry job gains three years into a recovery - but it might also be rescued by them.

A new al-Qa'ida attack might rally the country behind him; Kerry may implode in a Gore-like huff of condescension in the televised debates; war may break out with Iran; Afghanistan might have successful elections; Iraqi President Iyad Allawi may turn out to have more staying power.

When the race is still relatively close you'd be foolish to rule anything out now. But if Bush maintains his current posture and strategy it's only a matter of time before he follows his dad into first-term oblivion.

The Sunday Times

theaustralian.news.com.au