Originally Posted by
Dweezel
I posted this over at Valleywag about a week ago:
To further the comparison to MSFT, Google doesn't pay a dividend which increases the risk because you don't get any residual value for holding onto their shares. Contrary, MSFT pays a 1.4% dividend which based on a share value of ~$31, translates to $4.0 billion in annual distributions to its shareholders. That says a LOT about the financial solvency of a company when they are confident to put up their own cash for the shareholders.
I took a look at Google's B/S and Income Statement highlights and while they look strong on paper, there are a LOT of intangibles that point to them being overvalued.