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Old 08-18-2005, 07:37 PM   #2

Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,506


I can understand their rationale. The stock's overpriced and yet the investment community is still hungry for Google. Also, it was investors, not Google, who made the greatest cash gains from the stock's meteoric rise as a result of the IPO price being set at such a conservative rate. The company has a unique opportunity right now to cash in on an incredible wave of positive publicity and investor confidence.

Nevertheless, this move will almost certainly continue to place downward pressure on the stock price, which may upset the critical band of mom-and-pop investors who hold a handful of Google shares. The big institutions and underwriters won't be as concerned if the stock price dips, since they're cashing in on the new issue also, but Google does risk alienating smaller investors, which could further dent their image as a safe stock.

Any ideas as to what they might be looking to do with all this new cash?

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