A Dozen Reasons Why I Shorted Google
By Frozen Pozen
1. It’s on the latest cover of Fortune mag
An inevitable fall for the stars of that rag
2. You can use its products all the time
And never give the company a dime
3. Switching costs are equal to nil
That makes for software that’s easy to kill
4. Its p/e ratio is completely insane
These things to normalcy always wane
5. The same is true for its price-to-sale
Watch it deflate as investors bale
6. Insiders are selling left and right
If they’re not buying, why should I bite?
7. Shares are at 500 a pop
They can’t climb much higher without a drop
8. Yahoo and Microsoft on ads do compete
But a matter of time till GOOG feels the heat
9. The company has a stupid name
Except for WSSI, nothing’s more lame
10. New shares were sold in a secondary offer
You sell the overpriced, to stuff the coffer
11. What analysts love with their hearts all
Crash as soon as it scratches a wall
12. Lastly I’ll quote Horace’s prose
Which highlights the thorn on this rose:
“Multa renascentur quae iam cecidere, cadentque Quae nunc sunt in honore”
January 11th, 2007 at 11:14 pm
If you’re like us and needed help deciphering the Latin, it’s a quote used by Ben Graham in Security Analysis. It means: Many shall be restored that now are fallen, and many shall fall that now are in honor.
If you have a rebuttal, please submit it! We’d love to publish a reply.
January 13th, 2007 at 1:39 am
In response to #2, I don’t really agree with that.
Google makes all the money through search. If people use Google products, they will become accustomed to using Google search, and will probably click on those ads off in the top and right corners.
Plus I don’t see a slowdown in their Adwords or Adsense campaigns. In fact, I believe growth is accelerating.
January 15th, 2007 at 12:47 pm
Do they even make money when you click ads? Maybe they just get paid for placing them. (or for when you buy from the ad??) Remember that #8 works with #2 because goog is rich now since they were first mover or at least best mover. In a bit their service will be less unique and others will catch up. Buffett would say ‘no endurable competitive advantage.’
January 15th, 2007 at 4:04 pm
Festival of Stocks
Welcome to the January 15th Edition of the Festival of Stocks!
I’ll get right to the submissions.
Editor’s picks
One Guy’s Investments shares insight on why he swapped out of the Blackrock Indian Fund (IFN) in favor for Barclay’…
January 20th, 2007 at 1:40 pm
Thanks for posting this article in my ezine, Brilliant Business Ideas
March 30th, 2007 at 1:21 pm
Let’s all short Google on Monday! The future is not looking very bright and money is to be made on the fall of the company!
April 20th, 2007 at 5:43 pm
[…] Market Poetry presents A Dozen Reasons Why I Shorted Google posted at Market Poetry , saying, “Thanks and g’luck with the carnival!” […]