Alphabet Inc (GOOG)

One of the strongest, most innovative companies out there. It is going to be a bit volatile. He believes in the big tech companies right now, which have been undervalued for a long time. Not the growth story it once was, but is considered a core technology holding.

This is great. Not a typical $5 range kind of stock. Volatile, but has been acting very well. If there is any big drop off on an earning’s hit, etc., he would take that as a buying opportunity.

Largest Internet Company globally, specializing in search and advertising. They control 74% of the US Internet search engine market, and nearly 60% of the global search ad revenue. With the YouTube volume growth, increasing mobile ad sales and more cost controls, that should continue to drive the bottom and top lines. Trading pretty cheap at 20X forward earnings. 15% long-term growth rate, gives it a 1.3X PEG, which is pretty good for a large cap technology brand. Added to his position last month in the $705 area. Thinks it can get back up to the $800 level quite easily.

(Top Pick Jul 7/15, Up 36.24%) They continue to grow. It finally had a couple of good quarters. He is comfortable buying it here.

Has strong growth and is monetizing it through ad spending, and is obviously going more digital. They also have their other bets, such as curing aging through Calico. They are getting into the public cloud as well. Also, has 70% market share of Core Search. Growing at 20%. He has a $1000 target on this.

A very difficult stock to get your hands around, because like any high growth stock, it has a 70 P/E ratio. They could come out with profits that are 20%, and yet the stock could go down, because the market was expecting greater growth than that. For him, it is just too dangerous. It is really difficult to beat the market over time, but you can match the market with less risk, by focusing on companies that are more value priced, and this one is definitely not value priced. There are better ideas out there.

The core of their business grew 20%, but it was a miss and disappointed. $.85 of every advertising dollar is going into Google or Facebook (FB-Q). Google is really not competing on any of the enterprise levels. They are really starting to monetize YouTube, which they acquired 10 years ago. The new CFO is very well respected on the financial side. P/E ratio is around 19. They are growing 19%-20% a year right now.

Overall this is a good name. Facebook (FB-Q) and this company are standing ahead of the pack in terms of what they are doing being innovative. Thinks that it will recover after the next week or 2.

A great company and a very good business model. It has been getting more revenue out of the business, keeping costs reasonably in check, and being a little more shareholder oriented.

The leading search engine company, and is really about online advertising. This garners a huge share of the search traffic. On online advertising, on a global basis, only about 35% is allocated within the overall budget, so she thinks there is good growth opportunity going forward and Google will garner a high share of that.

Amazon (AMZN-Q) or Google (GOOGL-Q)? A tough one. It is the battle of the Titans. He would own both. He likes to buy companies that are disruptors and the change industries, and both of these have clearly done that. You could also buy the ETF (PNQI-Q) which is an Internet-based ETF giving you a basket, or FDN-N, the retail ETF.

He likes it. It is one of the stronger technical plays. It has a lid around $800, which it will eventually break. It may meander up and down before it breaks out again.

Technology comes into a period of seasonal strength from April all the way through to July. These companies all tend to have a run up higher into their developer conferences. This one’s conference is May 18-May 20. The seasonal strength is between March and July, and the average gain is about 17%, and has been positive in 9 out of the 11 periods. The technicals are still quite positive on this.

They own Search and are monetizing exceptionally well. Margins are starting to come higher. They are getting the earnings growth that they have wanted for a long time. Generating free cash flow and redeploying it into very strong acquisitions. On top of that, they own the best and one of the largest operating systems in the world, the Android Operating system. They are giving this away for free right now, but at some time they will monetize this.

(A Top Pick Feb 20/15. Up 37.27%.) He is not enthusiastic about buying this at $700 a share, but it is still a wonderful company. They are super-smart.