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Wednesday, June 08, 2005

The "Jimmys" Face Off over Google! (GOOG)

Sorry to beat this Google thing to death, but per my previous post, Cramer had Stewart on his show and got him to admit that while he's taking money here, he's reserving it to buy-in at a later point in time because he believes in the long-term trend for Google. Cramer also illustrated the fallacy of saying that Google is worth more than Time-Warner (TWX) because valuation also includes debt. This highlights a central point I was making earlier: Stewart had no idea what Jimmy was talking about -or- as soon as Cramer pointed it out, Stewart realized he made a rookie mistake (I'm talking about Enterprise Value: the concept that a company is worth Market Cap + Debt - Cash). Either way, believe the money man and not the guy who writes about other people doing stuff for a living -- there is no substitute for actual experience.


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