Duru and I were trippin’ off of Google being around $150 (without us!). We both talked about buying it a few weeks ago but both passed. He wanted to try it just after it tested the $100 level. I considered buying it as it took out its all-time high at $113.50. I’ve mentioned here several times that I like to wait for an IPO to make a base and then buy it once it makes a new high. (I made a killing doing that over & over back in the day.) That’s exactly what GOOG did, but I passed on it because I thought the base was too short. Silly me!
On a related note, I see some analyst is repeating what I said on the day of the IPO (you heard it here first):
Google rally shows banks low-balled IPO, Hambrecht says — Bloomberg.com (GOOG) 149.16 : Google Inc.’s share price has risen 75% since the co’s IPO in August, enriching founders, employees and investors. William Hambrecht, the banker who designed the search engine’s auction IPO, sees too much of a good thing. Hambrecht says his own clients were willing to pay $97 a share, not $85. Based on that price, Google may have left as much as $270 mln on the table. “They underpriced the deal to create a traditional discount to ensure the stock price would move in the right direction,” says Barry Randall, manager of U.S. Bancorp Asset Management’s $100 mln First American Technology Fund. Randall bid $96 each for 10,000 shares of Google. His firm received 7,421 shares at the IPO price of $85. At yesterday’s price, Google has a market value of $40.88 billion, just ahead of Dallas-based Texas Instruments Inc., which makes chips for half the world’s mobile telephones. (via Briefing.com)