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At least they try to warn small investers that they can be disappointed and discourage short term speculators. It looks like Google is discouraging people to buy stock anyway:
We do not intend to pay dividends on our common stock.
We have never declared or paid any cash dividend on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future.
This reads as: you should only buy stock if you expect the price to go up over time.
Could a native speaker please explain this bit please?:
We have not undertaken any efforts to qualify this offering for offers to individual investors in any jurisdiction outside the U.S.; therefore, individual investors located outside the U.S. should not expect to be eligible to participate in this offering.
Does this mean:
- if you are a non US resident, we may not be able to serve you,
- if you are a non USA resident, forget about getting shares
In the latter case this may cause Google to loose international users for letting them down, thus harming their business.
So far I haven't seen any numbers as to how the US revenue compares to other countries. Did anybody come across that?
I am not sure about this, but I think they mean:
We have not taken any steps to attempt to complete any paperwork or follow any laws that would need to be followed in order for this to occur.
Probably something like a movie producer saying (and this is the best analogy I can think of at 5:30 am):
We have taken no steps to assure this movie would qualify for a PG rating.
In otherwords - if it works out that it is legal - so be it, but they haven't tried to do so.
I am not familiar with all the steps that need to be done in order for this to take place. But they are very complex in my understanding. Google truly values their foreign customers (name another company so quick to translate their sites and offer feature in such a wide variety of languages).
They do have some of the figures you mentioned (US vs Everyone else) but I need to get some rest and there is a lot to read through for me to find it.
Keep in mind with the patriot act - things are even tougher. Even thoough I am an American Citizen - I am REQUIRED to give more info than ever before (most of it was voluntary before).
There is a huge interest in finding a way for foreign investors to be able to get in on the IPO. This will be updated as more details emerge.
As for the shares, my reading of that sentence is that only US residents will be able to participate in the auction process. I don't think this decision will "lose" them existing customers/users, but they are definitely missing out on a chance to create a buying frenzy worldwide, which would generate an incalculable amount of publicity and mindshare.
That said , watch out for the shorts . after Google stock is released you wil see the stock climb maybe double ,maybe triple within a few months.. then the short sellers enter .. you wil see a huge increase of google bashing on the Yahoo boards and they'l try it here also.. they'll present numbers that you wont understand , show you how Google is going to lose a bundle in upcoming quarters etc..
Because they SHORT the stock at what the believe the peak high of a stock is.. they profit as the stock loses value! ..
They are very good at what they do..creating doubt amoungst long term investors..
mark my words .. you wont believe the nonsense that these same shorts will use to drive the stock as high as possible..way beyond what google is really worth ..only so they can short it at the top...and trash google driving the stock as low as possble .. making money on the way up and down...
Nothing wrong with shorting a stock when you know the stock is overvalued.. but it seems like the shorts always seem to "work" the stock with more enthusiasm ..;)
Google is basically saying they don't want to play the games and do the little song and dance that other public companies have to do on a daily basis. Google has laid out the terms and basically told the big guys "This is how we're doing it, take it or leave it". I think it's a great idea.
Remember when Akamai went public? Back then me and a couple of other guys were going to pool our money and buy about $100,000 worth of AKAM stock first thing in the morning and sell it all before days end on opening day. Turns out we COULDN'T because all of the brokers controlled the stock, and even with $100k we were considered the "little guy" and didn't have enough money to buy in. You'll also remember that AKAM got up as high as 11 times the original buy price on opening day, and had we been able to do what we wanted with the times we had picked out, we would have walked away with nearly $900,000 on our $100k investment.
Anyway ... the point is that Google isn't letting that same thing happen. Anyone will be able to buy Google stock, the brokers aren't going to be able to hoard it so it can be sold only in large chunks. This is a good thing.
10 votes per share for the insiders, 1 for the little guys.
Uncertain governance due to their "novel" approach to quarterly statements.
It seems to be about rewarding the insiders, by funelling naive investors' money to them, more than anything else. And then we get, "Don't be evil" as the supposed motto, the idea being, "hey, we're wonderful folks, just trust us..."
To cap it all off, only Americans are allowed in on this. G doesn't seem to mind making money from the rest of the world through its dominance of search... what the h*ll is with this US only stuff?
I say, go for it America... feed your dollars to Larry and Sergey.
the price will jump as a result of high foreign demand
With all due respect, if US citizens are the only ones allowed to buy the stock, I can't see how that will happen. There will be no "foreign" demand, because us "foreigners" will not have the option of buying the shares.
<added> Danpeg, do you know if after the initial auction that others will be able to buy shares from Yanks? If people, (foreigners), at that point aren't totally p*ssed off at Google for being so arrogant, then perhaps international investors might consider buying in, after the inevitable tumble in the share price post Dutch auction inflation.