Re: Short Sell Google?
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The latest Google offering appears to be preparation for a significant future acquisition and/or large infrastructure development.
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I don't believe it. I believe this is wall street spin spun by their investment bankers.
Google has over $3B in cash. It's on pace to add another $1B by the end of the year. It's market cap is $78B. It has no debt. Using cash, stock or debt, it has tens of billions of dollars of "acquisition power", and it can easily finance $4B in infrastructure additions from debt or a combination of cash and cash flow.
Clearly, they don't need the cash. They are Buffett followers who believe it's time to sell stock when the stock is overvalued. Instead of selling their own holdings, they do a secondary where the cash will sit on their balance sheet to do their bidding. If GOOG stumbles badly, it's value will be held up by the $10B or so in cash they'll have in a year or two after this offering.
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