Alphabet Inc (GOOG)

Doing great things. Not necessarily focused on advertising although the bulk of the revenue comes from that. Lots of neat projects underway that could develop into bigger things. The main focus for him is the shift from advertising into mobile. Likes their tighter control of the Android operating system, which could make a good competitor for the IOS system.

He likes companies that are serial growers of the dividend and this one does not make the cut. Spectacular at innovating and penetrating markets. Excellent business. You don’t need to pay the premium for the voting shares.

They are doing an amazing job and growing revenues and earnings. They are brilliant individuals. He can’t buy it today because it is too expensive.

Some people were disappointed with the earnings last week, but he still thinks this company is better positioned than almost anybody at technology. People keep forgetting that they own the Android operating system, the most powerful OS and the one that is running better than 70% of the global cell phones right now. At some point they are going to monetize that. They own search, and when he looks at where data and data management is going, he feels they have tremendous value. Making very good acquisitions. You get all of this for about a market multiple or a little bit more.

Stock has come down about 15%. People didn’t like the earnings last week. Revenue was light and EPS was light. People are worried about the pay per click they are getting. It is hard to find a 16 Billion dollar company growing at 20%.

Had some disappointing earnings numbers after-hours today. However, he feels there is more of an issue that this is such a large animal with different tentacles, that analysts have trouble trying to pinpoint where the earnings are going to come from on a quarter by quarter basis. When you look at this from its inception to where it is today, it has grown so far and so fast. Anytime you can own this at a decent valuation this is a good name to own.

A great company. The cash flow that is coming out of them is fantastic. It allows for investing in other sectors. The transition to mobile has been wonderful. Super balance sheet. Management team has been consistent. They have lots of new developments. This is going to be one of the game changers as it has been in the past.

Positive seasonality, October to January of each year. It worked the last two years, but has been going sideways recently. Slightly below its 20 day moving average, but market relative strength is okay. Watch carefully over the next two to four weeks.

They split into two classes and these are the voting shares and he would buy them. Mobility is a key aspect of this company. People were hung up on the cost per click for advertising, but mobility upped their clicks so revenue growth is very robust. Their multiple is falling because earnings are growing faster. Things are setting up for a long term ownership position.

One of the better large cap tech companies you can own. Very innovative suite of products. Always thinking about trying to do something new. The problem he sees is that search has been displaced by banners. Social media has come on and moved into their space and taken advertising dollars away. He likes their business model, but it may not be the go-go stock it once was. You will get better than average growth and you are not paying a lot for it.

There has been a lot of pressure on tech stocks with the selling to make way for the Alibaba IPO. This creates a buying opportunity. Google’s hands are in absolutely everything. She likes it. Incredibly well managed.

Thinks that 80% of the world is working off this company’s operating system for mobile and mobile is really the way we are all going. YouTube is a hugely undervalued asset. The fact that they are able, with all that cash, to acquire and invest in developing new technologies, makes it a company that you just have to own. Very reasonable valuations.

Next to Apple (AAPL-Q), this is his biggest weighting in technology. These are brilliant guys. They diversified the core business into other ancillary businesses. They spend a lot of money on R&D. Some of that has yet to come to fruition. The basic search engine is going to drive it for years to come. Trading at around 18-19 times earnings, which is a very reasonable multiple to pay for the growth that it has.

(A Top Pick Sept 6/13. Up 31.13%.) Announced some really great earnings. Their “cost per click” continues to go down, but the number of clicks continues to grow at a much faster pace. They have some competitive threats, but he loves the Android Operating system. Have about 85% market share.

(A Top Pick Aug 21/13. Up 33.32%.) This is the concept of home automation on a bigger scale getting you into a Google product. They develop good products, and are going to be here for the long haul.