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Below-Expected Earnings For Google Posted Early, Trading Halted
An anonymous reader writes with this snippet from the BBC: "Trading in Google shares has been suspended after the internet giant released its third-quarter results early by mistake. Google blames financial printing firm RR Donnelley for filing an early draft of the results, which had been expected after the closing bell. Shares in Google were down 9% when trading in the stock was suspended. Shares had fallen as much as 10.5% at one stage. In a statement, Google said: 'Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation... We have ceased trading on Nasdaq while we work to finalise the document. Once it's finalised we will release our earnings, resume trading on Nasdaq and hold our earnings call as normal at 1:30 PST.'"
Good luck dumping your shares at 1:30, right? ;)
-5, not funny.
stop spyin
Speak english
What I'd do, is wait for all the panic selling, pick up some Nov or Dec calls, and when the panic ends, folks will probably buy back in and push the price up a little. Or you could just go long.
Panic selling always overshoots down past where the price will eventually settle.
A 10% drop in a stock value for a mistake like this is the perfect time to buy. Thanks, idiots!
Google MUST eat shit and DIE !!
No text needed.
Wish i had some cash to buy a few more shares. It's going to go back up since i'm guessing the major portion of the drop was all the automated shit kicking in all over and driving it down even more.
Easy money if you could buy some shares of google today. wait a week and make some bux.
If their earnings report has already been leaked and the results arent good doesnt that mean shares will still fall in price? If the new report has drastically different results wouldnt you suspect Google is simply flufffing up the results to save face?
Yep somebody got real rich. Yessiree
Oh dear
Income this quarter is lower than the same quarter last year but overall revenues are up 45% from the same time last year. So that means that its income is less in proportion to how big it is, 19% of revenues last quarter against 37% last year. Google as a business is getting bigger but its profits are dwindling. Bigger but not better
Moto is loosing money (the rate does seem to have slowed) on top of the 12 Bn purchase price
Why in earth Google is releasing the new Nexus phone made by any one else other than Moto doesn't make any sense to me at all, apart from google not wishing to piss off other OEMs who aren't raking it either.
Othe contributing factors I'd imagine are people using apps instead of browsers, so there's less opportunity for google to place ads directly and ad rates aren't as lucrative a they once were.
As for the timing. Today or tomorrow? Wouldn't the stock have taken a dive anyway? Just off the top of my head thoughts
Watch those corners
Is the BBC anglifying the spelling of a U.S. company's report, or are the people at Google huge anglophiles?
October 2012 will be remembered as the worst month for operating systems in a long time
Windows 8, Adbuntu 12.10, iOS with worse maps and of course new Crapbooks from Google. Dump your shares, invest in bitcoins or Iranian Rials.
This seems really silly to halt trading. If people are dumping their stock due to speculation or accidental reports, let them do it! This just means that others can buy the stock while it's down and should the actual report come in that and everything be ok, well those early speculators just lost out.
It just seems like by having trades be halted if things get too crazy or even backing out trades if they were due to HFT bugs, you're removing all the risk and just enabling dumber and bolder investment strategies.
in for 100 shares at $694.38. It'll be over $700 by COB tomorrow.
I'm pretty sure you mean 1:30 PDT, not 1:30 PST.
My other sig is extremely clever...
A pet peeve of mine (and one of my biggest gripes with Google News) is promoting news sources that are nationally or geographically far removed from the event in question. In this case, I noticed the British spelling of "finalise", which directed my attention to the fact that the linked article is from the BBC. So then I assumed this was in some way related to the London Stock Exchange, or it was the UK division of Google that prematurely released the figures. However that is not the case as this was indeed suspended on NASDAQ and involved the parent Google company.
Better known as 318230.
You don't just spend $8 billion or whatever it is for "patents". Google either needs to wake up and realize they are now a manufacturing company, or investors are in for a lot more pain.
Just in time for the 25th anniversary of Black Monday crash, where the Dow lost 22% in one day.
"I bless every day that I continue to live, for every day is pure profit."
will cook the books in the hours in between
Like there's a fucking difference!
perhaps they shouldn't be allowed to trade.
LOL- Looks like Google should consider (WF) Windows Workflow Foundation, or SharePoint with an Approval workflow ...
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Some analyst somewhere just got canned. Hard core canned to like "You don't even get to keep the stuff on your desk GTFO"... like thrown from a window canned.
I don't know what a 'short' is by my dad works for RR Donnelley and he says we're going to be RICH!
Now I know why EVERY video I watch with the Youtube app has an ad first since about 6-8 weeks ago.
Then 85% of my retirement accounts will be screwed.
How can you declare bankruptcy when you have ZERO debt?
New Economic Perspectives
Apple is founded by Steve Jobs, an Syrian American Muslim dedicated to combat the Google Jew World Order.
Mobile phones and tablets are sucking the profit out of them. They dont have a vertical supply chain of factories and stores like Apple.
Know we know why Larry has a 'throat' problem. Premature ejac... i mean earnings releases...
Buy low, sell high, eh? Isn't that capitalism 101? Convenient we can blame a scapegoat!!
char*f="char*f=%c%s%c;main(){printf(f,34,f,34);}";main(){printf(f,34,f,34);}
How's that Zune RT doing fer ya?
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Strange story, that. I've been investing since I was a teen, and did paper trading in grade school from stock tables.
On Black Monday, after having just written an Economics paper for Capilano University on ethical investing, for which I'd researched true and tax book value for corporations, I realized that Apple was selling at such a low rate you couldn't lose if you bought it.
I phoned my grandmother and told her not to panic, and to put $10,000 in Apple stock. She did. Later she gifted part of it to me. I later sold parts of that and bought and sold Microsoft stock from the proceeds, which became the 20 percent downpayment on my first house.
Best stock day ever.
This led me to a later decision to buy 600 shares of Ford on what turned out to be the absolute bottom of the market. Made a killing on that.
From risk, comes opportunity.
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1 - Earn your own money working for others, without going into debt.
2 - Invest said monies in your business in a sensible fashion
3 - profit
4- goto 2
See how that doesn't involve stocks, investors, angels, debt, fake money, speculative markets? Nothing there but personal responsibility and effort. That's business with honor; that's also a business that can plan further than the next quarter.
I've fallen off your lawn, and I can't get up.
Sounds like they didn't get time to prepare the astroturfers to be able to tell us how great this is.
What else ?-//
Apparently, Google can't keep it's own financial report private. Could our data be protected... Not that others are any better...
If you read this
Trading in Google shares was suspended for two-and-a-half hours after the internet giant released its third-quarter results early by mistake.
you would have thought that it was Google who had released its third-quarter result, mistake or not.
But if you read this
Google blamed financial printing firm RR Donnelley for filing an early draft of the results ...
or this, from http://www.guardian.co.uk/technology/2012/oct/18/google-shares-suspend-email-22bn
Company results circulate internally for several days as they are being prepared for public release to strict timetables, normally under strict secrecy. Leaks of the figures are extremely rare, but on this occasion Google tersely blamed financial printers RR Donnelly for filing its draft third quarter results "without authorisation".
you would be getting a much clearer picture of what had transpired.
I don't know why BBC chooses to word its news article in such a misleading manner.
The difference in interpretation might be "minor" but the consequences would be huge, if people only get parts of the main picture.
Muchas Gracias, Señor Edward Snowden !
The increase in PE ratio due to their reduced earnings are ripe to be augmented by a cool product like the glasses they've been working on.
https://plus.google.com/+projectglass/
I'm so much more excited about those than anything Apple makes and that could really give Google the growth they need.
I bought Nortel and Corel.
There is nothing to prevent trading on a stock from becoming so irrational that it goes outside of the fundamentals floor, crashing below the book value of the company, particularly in a panic. Stocks whose price drops enough to start tripping stop loss orders can easily accelerate right below that for some amount of time, with fun stuff like margin calls joining the party too. Value investing based on fundamentals can work very well. But the idea that it must bound the movement of a stock's price, which are driven by all sorts of other things, is not a riskless one. It assumes you can always wait out irrational market behavior, and that's hard to guarantee.
This is sort of off-topic for Google though, given the company's P/E ratio history. It's still pretty far from being a book value driven investment.
Ford hit a low of around $2 back in 2009. If that's what you're talking about, I would call that a good bet but not "a killing" since you would have made 8*600 = 4200 on that so far. I too thought about buying F at $2 - the bet was "are they going to survive?" If they survived there would be a huge percentage gain. If not the money would be lost. Unfortunately I didn't realize that all the debt they took on was not spent, but kept as working capital - this allowed them to easily navigate the financial crisis without needing to borrow money at a time when none was available. I thought they were broke, so didn't buy.
"GOOG" posted a third-quarter profit of $2.18 billion, or $6.53 a share, down from $2.73 billion, or $8.33 a share, a year earlier. Excluding stock-based compensation and other items, profit fell to $9.03 from $9.72 a share. Revenue, excluding traffic acquisition costs, improved to $11.33 billion.
Analysts surveyed by Thomson Reuters expected earnings of $10.65 a share and net revenue of $11.86 billion.
Total costs jumped 71%.
Not good. Profits are down, and costs are way up. Need to look at the 10-Q filing to find out what the "traffic acquisition costs" are. Earnings excluding stuff are a form of spin control. The real number is the GAAP earnings, which will appear on the 10-Q.
The numbers indicate that Google is buying traffic, and it's not helping profits. That's a sign of trouble. It's not yet clear how bad the trouble is.
Looking ahead, at some point, we're going to hit "peak online advertising", where total spend on online advertising stops growing. At that point, everybody whose business model is "ad-supported free" is in competition with everybody else in that model, fighting over a pie of fixed or declining size.
Oddly enough that's still true today.
maybe you shouldn't be doing it in the first place
Your greed is boring.
They halted trading to prevent the rest of us from having the same data as the inside traders already have due to leaks of exactly the same report to "special" traders and their favored clients. Part of the whole point of the insider trading regulations is to protect the value of that inside information for the privileged few. And if you don't think vice presidents and board members don't take advantage of that long "no-trade" period where mere peons with stock options or non-voting shares aren't allowed to trade without playing all sorts of legal games just before an earnings announcement, you haven't been paying attention to your board members' finances in big companies. The VP's and board have access further ahead, further enough ahead to plan *exactly* how to hide their insider knowledge from casual review: but if everyone else at the company could use that knowledge to trade, their insider knowledge would be much less profitable.
Think I'm kidding? Watch the stock trading in associated businesses by the trust funds for family members of wealthy board mumbers, for the 2 weeks before trade freezes for employees go into effect. It's difficult to get that information, but well worth it to predict layoffs or hiring in your own company.
that you haven't read the EULA before storing the document in the cloud...
Everytime a stock is suspended because of a sudden event (that, the death of Steve Jobs) is actually a reminder that trading decisions need more than a few nanoseconds to be taken. The timestep on trade order is so fast that when a new important information arrives, the stock is suspended for a few hours. Now tell me : why isn't the timestep of a few hours? Stock trading stops on night and week ends. Why does it need a 1 ns timestamp during weekdays?
The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
I phoned my grandmother and told her not to panic, and to put $10,000 in Apple stock.
That's a really heartwarming anecdote about how those who start out rich (whose granny has $10,000 in their account just waiting to be spent?) find it easy to get even richer despite economic circumstances.
To have a right to do a thing is not at all the same as to be right in doing it
yeah about that email i sent out my bad, i could never get that gmail recall thing working, did i miss anything!
Rich? My grandfather was employed in public works in NYC and my grandmother was female at a time when women didn't get paid much.
They saved.
Want to know how to get rich?
1. Steal it. (e.g. Gates, that FB guy, etc)
2. Inherit it (only works if you are of Scottish, Welsh, Russian, or Jewish ancestry, though)
3. Save and invest more than 10 percent of your income your whole life.
Which are you?
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is that like Nortel the wireless stuff and Corel as in CorelDraw?
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You should never be involved in stocks if your time horizon is less than 5 years.
If 3-5 years, buy distressed utility bonds.
If less than 3 years ... well, you're FUBAR nowadays. Pay off your credit cards and car loans.
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You forgot that half of what you make in stocks is almost always dividends.
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Yep. Corel was overhyped and drained post-dot-com, they had good products and their stock was worth almost nothing, so I grabbed some.
The same was true for Nortel. They lost 60% of their value and seemed to be plateauing. They had a strong installbase, and a huge patent portfolio.
I figured, "from risk, comes opportunity"
Corel continued to make good products as their stock fell to pennies, they were purchased by the Canopy group, all the shares were delisted.
Nortel turned out to be lying about their financials, and their debt stretched them too thin into non-competitiveness.
Corel is still in business, there was another IPO, when normal investors could buy, the stock wasn't pennies anymore. No point in throwing good money after bad.
Point is, it's called risk, because you can lose too. The trick seems to be to keep taking chances and learn from your mistakes, but it's no guarantee. There's a good strong random element to success.
I used to do tech IPOs. Used to only drop a couple thousand in each one, and set mental buy/sell limits.
If you spread out risk, taking a flyer on a good bet works out more often than not.
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to set their privacy controls correctly.
If it *really* works out more often than not, it's not "risk"
I'm no ameteur, just pointing out that taking a flyer can go either way. Microsoft, RIM and Nokia might make awesome comebacks, people may kick themselves for not buying them, or maybe they'll shrink into irrelevance. I set stop limits to take profit and use options to cover positions. Manually triggering your set-points is time consuming and error-prone.
A well diversified portfolio will track the market in your areas of interest. A well diversified high-risk portfolio shoudl be more volatile, but show greater gains when stretched out longer over time. People like measuring peak to trough and trough to peak though, which is thoroughly unrealistic.
The past few years in the market have been a crapshoot though. I've mostly been standing back until I see some kind of pattern.
The past few years in the market have been a crapshoot though. I've mostly been standing back until I see some kind of pattern.
Agreed. Your best bet right now is a dividends plus stock strategy. Moved 90 pct into S&P 500 mutual fund at 0.03 pct cost ratio.
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