Cramer’s Stop Trading!: Berkshire Hathaway
I be delivered of decided to part ways with Google(GOOG). Google remains a small company, employing some of the best engineers in the Internet/technology universe. I use the company's Chrome browser, and Google is my main search service. Google is rich in cash and has zero due. Furthermore, the company has made many investments that should pay from in the future.
Unfortunately, I have become weary of the treatment team's ability to lead this company into the future. Specifically, in that place are three recent events which when taken together have led me to my decision.
1. In January of this year, Google announced that it would block censoring search results in China after the company detected attacks forward emails of Chinese human rights activists. On March 22, Google redirected its China exchange through Hong Kong. That cuts out about 30% of the planet from using Google. In the action, Bidu(BIDU), the Chinese Internet search service, was left as the principal search service in that country. While Google's actions might be in possession of been morally correct, they were not optimal for shareholders.
2. In May, German prosecutors opened a wicked investigation into Google. The German authorities were concerned about Google's mode of collection of private data from unsecured wireless home networks in Germany. Google was required to otherwise than that did not agree to hand over disk drives with the incriminating facts to local authorities. The investigation is still pending.
3. While Google current Federal Trade Commission approval to acquire AdMob, apparently there was some internal opposition at the regulatory body to the deal. I reverential regard that the FTC and regulators in Europe could plan to plead Google on antitrust or anti-competitive issues. Google commands an overwhelming divide of Internet advertising and search revenue in the U.S. and Europe. Europe is in hopeless financial condition and could seek a source for fines or attempt to support European competitors. Google could be the easy low-suspension target. In the U.S., an antitrust lawsuit spells trouble.
These issues are entirely emblematic of a company that lacks the proper management team. Larry Page, Sergey Brin and Eric Schmidt are tot~y brilliant engineers and technologists, but they lack corporate managerial acumen. As the house increases its global footprint, that triumvirate is increasingly putting the troop at legal risk for which it has no experience to go in a vessel.
Who Owns Google?
Chris Davis
SAC Capital
Navellier & Associates
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