Thursday, January 13, 2005

Last night in Financial Statement Analysis class we valued Google stock using standard measurement techniques. Drumroll please... we came up with a value of $3 per stock (Google is currently trading around $195). Um, what's up? We jigged the numbers to include %200 revenue growth (so by 2010 they'd theoretically have to be generating as much revenue as Microsoft does today). New valueation... $4. Ok somethings wonky here, no joke. Google's reporting comes out Feb 1 where we'll hopefully get some indication as to where they'll be spending their over 3 billion dollars in cash... hopefully.

At the same time it's impossible to justify online advertising as the driving force for this kind of future growth and other revenue streams such as the now popular desktop search tool don't seem to be materializing anytime soon.

The number of patents a company submits can indicate innovativeness, here's the top 10 patent filers of 2004 (US). The big winner was IBM thta had almost twice as many as a distant number 2. There's some names I'm surprised not to see here that supposedly centre their corporate strategy around innovation such as 3M, although they've had a rough couple years.

Classes at U of U rock, the preparation does not ;-) Anyways I hope to get my digital camera this weekend so I'll soon be able to prove that it was freezing cold this morning with snow on the ground and now the sun is out, melted the snow and people don't even have their jackets on anymore. Tomorrow's forcast... dido :-)

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