Alphabet Inc (GOOG)

Currently out of, but a name he would like to be back in. Not a lot of people understand all the moving parts. Growth ratio is great. Nearly 20% earnings growth. GOOGL vs GOOG is the one most people seem to be going with. But they should mostly move in tandem at this point.

They did a stock split and created a ‘C’ class. The ‘A’ is GOOGL and the ‘C’ class is GOOG. ‘A’ are voting, but ‘C’ isn’t. This was issued with the idea of doing acquisitions. The value of the company has not changed, but the number of shares has.

Has done very well from a price standpoint. Has kept up in terms of fundamentals. Going to earn somewhere in the area of $50 a share this year. Not inexpensive, but growing very nicely at around 20% on both the revenue line and the earnings line. The story here is the mobility aspect.

(Top Pick Feb 5/13, Up 59.35%) The risks going forward are in execution. Motorola acquisition was a failure. They recognized it was not a fit and moved away. Google took YouTube and monetized it to the point it is a huge success. They are an advertising company and not a technology company.

Yahoo (YHOO-Q) versus Google (GOOG-Q)? Google has 60%-70% plus of market share in terms of Search and is clearly the dominant player in the space. On ad based revenue growth, they been able to grow and currently have a new “enhanced campaign” for targeted marketing. If you want to play search, growth in mobile and ad revenues, this is the one to play.

Likes this a lot. Sold his holdings a couple of months ago and it’s a name he would look to get back into. It is currently in overbought territory. 1.1-1.2 peg ratio. Great name long-term going forward. If he could see it back down to $1120 or $1050, that would be better entry points for him.

This company has growth in front of it. More expensive, but it is expensive for a reason.

A wonderful company. A toll road on the Internet. Advertising demand should increase as the economy improves. Online sales are still in its infancy. He prefers Apple (AAPL-Q).

(Market Call Minute.) Great brand but expensive.

Trading at a reasonable valuation. Good revenues and earnings.

(Market Call Minute.) A juggernaut. The more eyeballs they can get, the better. Mobile is great for them. Has been misunderstood in the past because paid clicks have been down. You should be looking at volume, which is the key.

(A Top Pick Aug 21/12. Up 17.93%.) His outlook on this one came from the way they were changing their advertising model. It is amazing way they are able to say to their customers 1) here’s what you are doing 2) here is what you are now willing to do and 3) here is how you are going to do it. This got a lot more traction than he had expected. Strong balance sheet. Biggest risk would be the innovation risk.

(Market Call Minute) Take profits next year to defer taxes.

Had a significant run in a short period of time. Upside on a reasonable sort of valuation metric is probably $1150-$1200. If you like those odds, then it is fine to Hold. They have the dominant market share in search but some of their enhanced programs seem to be working in bringing in ad revenue. A momentum stock and once the market throws it back out of favour, the stock can easily trade back down.

(Top Pick Aug 29/12, Up 47.63%) Biggest holding in all his funds. One of the cheapest plays on this new technology. They should split it but doesn’t know if they will. Larger server manufacturer in the world, just using them internally.