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Posted Feb 27th 2007 9:55AM by Georges Yared
Filed under: Forecasts, Industry, Internet, Google (GOOG), Yahoo! (YHOO), eBay (EBAY), IAC/InterActiveCorp (IACI)
Jim Cramer has stated that Google, Inc. (NASDAQ:GOOG) is probably in a slight pause here at $464 and that it would become a lot more interesting around $440. I agree; not all stocks just zoom straight up. The digestion period for a stock as successful as Google is a healthy thing.
Cramer then recommended three names to replace those Google dollars: eBay Inc. (NASDAQ:EBAY), Yahoo! Inc. (NASDAQ:YHOO) and IAC/InterActiveCorp. (NASDAQ:IACI). All three a good technical as well as fundamental calls. Yahoo! will be most fascinating to watch as it has lowered expectations enough it would probably exceed them in the next few quarters. Memories are short-lived, the headline will read "Yahoo! exceeds estimates."
Cramer forgot to add the fourth name to the group. That company is VeriSign, Inc. (NASDAQ:VRSN).
VeriSign is the toll-booth of the internet. Any traffic, be it emails or web searches that end in .net and .com go through VeriSign's data center in Sunnyvale, Ca. By the way, that data center is as fortified and protected as the data center of the U.S. Pentagon. No matter where an entity buys the .com or .net address from, VRSN is remitted $6 per year. Currently there are 65 million .com/.net addresses and the growth in 2006 was nearly 30%.
VRSN also issues secure, website digital certificates. These are the little invisible beasts that secure our transactions through an encryption technology. VeriSign has issued over 800,000 such certificates to its customers, and growing double digits. What's appealing is that VeriSign charges $699 per certificate/server -- per year. Can you say cash-cow?
VRSN is involved in several other businesses that serve the internet and telecommunications infrastructure. The important detail is this company is resuming top line/bottom line growth with operating profit margin expansion. At $26, the sum-of -the-parts for VRSN is worth $33-35, and that's before growth is factored in.
So VRSN is the 4th name to buy with Google money..
Georges Yared is the author of recently released books "Baby Boomer Investing...Where do we go from here?" and "Stop Losing Money Today". Please visit http://www.georgesyared.com
Filed under: Forecasts, Industry, Internet, Google (GOOG), Yahoo! (YHOO), eBay (EBAY), IAC/InterActiveCorp (IACI)
Jim Cramer has stated that Google, Inc. (NASDAQ:GOOG) is probably in a slight pause here at $464 and that it would become a lot more interesting around $440. I agree; not all stocks just zoom straight up. The digestion period for a stock as successful as Google is a healthy thing.
Cramer then recommended three names to replace those Google dollars: eBay Inc. (NASDAQ:EBAY), Yahoo! Inc. (NASDAQ:YHOO) and IAC/InterActiveCorp. (NASDAQ:IACI). All three a good technical as well as fundamental calls. Yahoo! will be most fascinating to watch as it has lowered expectations enough it would probably exceed them in the next few quarters. Memories are short-lived, the headline will read "Yahoo! exceeds estimates."
Cramer forgot to add the fourth name to the group. That company is VeriSign, Inc. (NASDAQ:VRSN).
VeriSign is the toll-booth of the internet. Any traffic, be it emails or web searches that end in .net and .com go through VeriSign's data center in Sunnyvale, Ca. By the way, that data center is as fortified and protected as the data center of the U.S. Pentagon. No matter where an entity buys the .com or .net address from, VRSN is remitted $6 per year. Currently there are 65 million .com/.net addresses and the growth in 2006 was nearly 30%.
VRSN also issues secure, website digital certificates. These are the little invisible beasts that secure our transactions through an encryption technology. VeriSign has issued over 800,000 such certificates to its customers, and growing double digits. What's appealing is that VeriSign charges $699 per certificate/server -- per year. Can you say cash-cow?
VRSN is involved in several other businesses that serve the internet and telecommunications infrastructure. The important detail is this company is resuming top line/bottom line growth with operating profit margin expansion. At $26, the sum-of -the-parts for VRSN is worth $33-35, and that's before growth is factored in.
So VRSN is the 4th name to buy with Google money..
Georges Yared is the author of recently released books "Baby Boomer Investing...Where do we go from here?" and "Stop Losing Money Today". Please visit http://www.georgesyared.com