Google made a strong increase in sales and a bigger profit than expected in difficult economic days.
Google made a net income for the third quarter of 1.35 billion dollars, That’s an increase of 26 percent. Their goal was they would get 4.75 dollars per share, but they did much better than expected, they earned 4.92 dollars a share.
Chief executive Eric Schmidt said he is happy with the results and he is happy that Google did better than expected in these hard economic days. Their goal is to manage Google on the long term. They want to improve the search of people on the internet, but also improve the ads for the companies and they want to invest in the mobile sector, Google wants to launch their own mobile phone.
When this news appeared on their website Google did good on the markets, they jumped more then 7 percent.
But there are some concerns, investors are concerned about the performances, because its business invest in advertising.
The share of Google felt down in the past 3 months with 36 percent because the investors are worried about the fact that Google wants to pull back on spending on search advertising.
But the facts shows the opposite, there is 18 percent more clicked on the Adsense than the same period one year ago.
Eric Schmidt said that Google will not touched by the economic crisis, when there is a crisis, people still search on the internet, but they search other stuff.
Investors wants that Google jumps over Microsoft, it’s possible that Yahoo! And Google go together with their advertises but the decision is still on hold because the government is concerned that a Google and Yahoo! would produce an online advertising monopoly. If this would happen Google would jump over Microsoft that failed to buy Yahoo!.
I think it’s good that Google made their profit rising with 26 percent.
It’s very normal that Google will not touched by the economic crisis because people still search on the internet. I use Google already 6 or 7 years and I still use it.
The only way that Google will hit by the economic crisis is when people needs to conclude their internet subscription. But in this society it’s impossible to have no internet.
It would be great for investors of Google if the company said yes to Yahoo!.
But for me it’s sometimes annoying when I go to a site there are always advertises of Google. When they go together with Yahoo! I hope there will be structural rules for them for their advertises but it would be great for the investors.
Source: http://money.cnn.com/2008/10/16/news/companies/google_earns/index.htm?postversion=2008101616
zaterdag 18 oktober 2008
donderdag 16 oktober 2008
Bank stocks rise but fear of recession hits Footsie
On October 15, 2008 bank shares knew a good day. Investors were convinced that banks could rely on a government guarantee and could still pay out dividend. But the fear of recession is as high as ever after two days of euphoria on the stock markets.
Many important banks have seen their shares charge up during the last two days. For example Lloyds TBS has gone up from 15.3p to 166.6p.
But the euphoria was only for a short period. Most traders said that investors were mostly looking to ensure their gains made on Monday or make sure that their losses weren’t as big as after last misadventure. The biggest losses were made with shares of mining and insurances.
We can see that improvement of the financial situation is on the way but analysts advise not to hurry into buying shares because we haven’t seen the end of the difficulties yet. After a lot of capital being pumped into the financial sector we should begin to see some improvement but the uncertainty of the investors remains as high as ever.
I think we haven’t seen the end of the crisis yet. The capital support of the governments is really helping the banks to strengthen their capital position, but it isn’t taking away the uncertainty of the investors. The financial crisis has really had a very bad influence on the global economy. The global economy will need some time to recover itself and until then recession isn’t inevitable. It is a bad moment to buy shares but without the investors capital, we get stuck in a vicious circle. The markets need the money of the investors, but the investors are scared for their investment because the markets are very volatile at the moment.
Source: Daily Mail: Bank stocks rise but fear of recession hits Footsie
http://www.dailymail.co.uk/money/article-1077790/Bank-stocks-rise-fear-recession-hits-Footsie.html
Many important banks have seen their shares charge up during the last two days. For example Lloyds TBS has gone up from 15.3p to 166.6p.
But the euphoria was only for a short period. Most traders said that investors were mostly looking to ensure their gains made on Monday or make sure that their losses weren’t as big as after last misadventure. The biggest losses were made with shares of mining and insurances.
We can see that improvement of the financial situation is on the way but analysts advise not to hurry into buying shares because we haven’t seen the end of the difficulties yet. After a lot of capital being pumped into the financial sector we should begin to see some improvement but the uncertainty of the investors remains as high as ever.
I think we haven’t seen the end of the crisis yet. The capital support of the governments is really helping the banks to strengthen their capital position, but it isn’t taking away the uncertainty of the investors. The financial crisis has really had a very bad influence on the global economy. The global economy will need some time to recover itself and until then recession isn’t inevitable. It is a bad moment to buy shares but without the investors capital, we get stuck in a vicious circle. The markets need the money of the investors, but the investors are scared for their investment because the markets are very volatile at the moment.
Source: Daily Mail: Bank stocks rise but fear of recession hits Footsie
http://www.dailymail.co.uk/money/article-1077790/Bank-stocks-rise-fear-recession-hits-Footsie.html
Fortis reveals value of remnants
This week was very exciting for the shareholders of Fortis. Tuesday October 14th, they knew what the shares were worth on the market, after a suspension period of six days. The answer was a serious shock. In Brussels, Fortis started again at €1.91. At the stock market of Amsterdam €2.00. This is the lowest level that the bank has ever reached since they exist. Which is a big contrast with the price last year, when your share was worth €34.
In the past couple of weeks, there have been a lot of striking changes. First of all, the company was partially nationalised by the Belgian government. Secondly, Fortis was partially sold to the French bank BNP Paribas. Last week, the bank got suspended because they hadn’t given enough financial details about their new structure.
Because of the nationalisation and the sale to BNP Paribas, the stockholders now own a much smaller group.
The market capitalisation before the suspension was about €7.4bn. This Tuesday, it was less the €5bn.
At the beginning of the week, the news was spread that Fortis would receive almost €14.5bn. This came from the nationalisation and the sale of a part of the company.
The board said that all debt will be paid off, but they still had to make “the detailed lines”. The chief executive of Fortis, Filip Dierckx, told that “all options are open for the group’s strategy”. He also wanted to give more information about the management positions before the stockholders meeting in a few weeks.
The suspension was maybe a ‘good’ thing for the company so that they know that they will have to work hard to fix the problems. It is a sign from the government to Fortis in order not to make the same mistake again by keeping information to themselves. Of course, for the shareholders, this is very negative news. They’ve lost a lot of money and now they lose even more.
The shares are incredibly low, but the bank still exists. Without the interventions and other measures, Fortis would be bankrupt.
Now it is up to the company to do everything they can to restore the trust of the shareholders. If they manage to do that, the shares will probably rise again.
I really hope that the board comes up with solid solutions and information before the meeting.
Source: The Financial Times – Fortis reveals value of remnants
http://www.ft.com/cms/s/0/ad4cff3c-99ce-11dd-960e-000077b07658.html
In the past couple of weeks, there have been a lot of striking changes. First of all, the company was partially nationalised by the Belgian government. Secondly, Fortis was partially sold to the French bank BNP Paribas. Last week, the bank got suspended because they hadn’t given enough financial details about their new structure.
Because of the nationalisation and the sale to BNP Paribas, the stockholders now own a much smaller group.
The market capitalisation before the suspension was about €7.4bn. This Tuesday, it was less the €5bn.
At the beginning of the week, the news was spread that Fortis would receive almost €14.5bn. This came from the nationalisation and the sale of a part of the company.
The board said that all debt will be paid off, but they still had to make “the detailed lines”. The chief executive of Fortis, Filip Dierckx, told that “all options are open for the group’s strategy”. He also wanted to give more information about the management positions before the stockholders meeting in a few weeks.
The suspension was maybe a ‘good’ thing for the company so that they know that they will have to work hard to fix the problems. It is a sign from the government to Fortis in order not to make the same mistake again by keeping information to themselves. Of course, for the shareholders, this is very negative news. They’ve lost a lot of money and now they lose even more.
The shares are incredibly low, but the bank still exists. Without the interventions and other measures, Fortis would be bankrupt.
Now it is up to the company to do everything they can to restore the trust of the shareholders. If they manage to do that, the shares will probably rise again.
I really hope that the board comes up with solid solutions and information before the meeting.
Source: The Financial Times – Fortis reveals value of remnants
http://www.ft.com/cms/s/0/ad4cff3c-99ce-11dd-960e-000077b07658.html
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