Alphabet Inc (GOOG)

Last year this was a sort of underperformer, but the company’s earnings have continued to grow. Trading at about 16X forward earnings. Still lots of growth ahead of it.

The majority of it is about search and it is going to continue to grow. It trades at a market multiple or less.

They have the dominant share in search and online advertising. Have invested a tremendous amount of money in the business. $35 billion in CapX and acquisitions over the last 3 years, and he is not sure that he can see the benefit of that. EBITDA margins have come down over the last few years as the business mix is shifting. The momentum behind desktop search is slowing somewhat. It is more the mobile search and mobile advertising that has the advantage.

Just buy it and put it away. The market is undervaluing their assets. Their acquisitions have been smart. 18 times earnings and generating cash.

This or an ETF in technology? This is a wonderful company. The concern right now is that there is some competition in their core space in search/advertising. There may be better alternatives. For an ETF, you might want to look at a broad-based one such as the Guggenheim E. W. Technology (RYT-N) or SPDR Technology (XLK-N). Also, don’t forget about Apple (AAPL-Q) which is in the midst of a great product cycle and is not expensive.

Stock is starting to respond a lot in the last little while. With this one you are paying 20X earnings with a 20% growth rate. This is a massive company and they are monetizing. Making money in the U2 space and are making many acquisitions that will benefit their bottom line. Longer-term, this is one of the better tech names to own.

90% of their revenues come from online advertising. They are the leading search engine globally. The stock did nothing in 2014 and the valuation came down. Trading at about 17-18 times forward earnings, very much in line with where she sees their earnings going over the next 2-3 years. There is still a lot of room for online advertising to grow.

This correction that the stock has had gives you an opportunity to get a high-quality growth stock. He looks at this as an opportunity to at least get positions started on a stock that has been a long-term winner for a very long time.

There was a gap back in 2013. The level you would want to be concerned with would be at around $502-$490. If it breaks down there, the chart not only shows a double top, but the whole thing through 2014 becomes a sort of orphan space. Once it starts to come into the gap at around $480, it is probably going to be a bit volatile. If you have a long-term horizon, such as 10 years, this might be a real good investment for you.

Likes it very much. Earnings are dramatically understated. They spend a lot of what they earn and don’t return it. This could be the year in which they start to return capital to shareholders. Search will still be able to generate tones of extra cash.

Google (GOOGL-Q) or Baytex Energy (BTE-T)? Completely different animals, but to him Google is one of the great growth stories out there. They haven’t really monetized their Android system. They own “search” on a global basis and have so much power they haven’t monetized. You are getting all of this at basically a market multiple with a great balance sheet. This would be the one that would allow him to sleep at nights over the next couple of years.

This has been an under performer. The trouble is that institutions are going to go where the money goes. Because of this, there is going to be a certain amount of pressure on the stock. Chart indicates that this has broken down through a trend line. Also, the last low at around $530 has been broken through and is now at $520. That is not a good thing. There might be better alternatives.

Internet stocks as a group have underperformed recently due to profit taking. One of the concerns now is how much revenue is out there and available for online advertising. We are seeing money move toward more economically sensitive names. There has been tax loss selling recently. He is still in AAPL, semiconductors, and security software however.

Hasn’t really done very much over the last year. Expectations on the street were fairly high. This company doesn’t give guidance. They are quite independent that way. However, he likes that because he sees a lot of companies giving guidance. If they miss by just a hair, the street reacts very violently; this encourages people to micromanage over short periods. These are long-term assets and have to be viewed that way. Thinks that in 2015 this company is going to do good things. Earnings are probably going to rise in the mid to high 20%s, revenues probably in the 18% range. Trading at less than 20X earnings.

A very impressive company. Preeminent in search and preeminent software for mobile devices with their android software. They are the “go to” for advertisers who want to get their message out on any kind of computing device, including mobile devices. You also get what he calls lottery tickets, with the driverless car or whatever they might be developing. This company has almost $100 per share in cash and trading at probably 19X or so 2015 earnings. If you take away the cash, it is trading more like 15X or 16X. Doesn’t pay a dividend but are sitting on $62 billion, which will be burning a hole in their pocket. Feels they are either going to start to pay a dividend or are going to start to buy back shares.