Could One Of These Companies Be The Next Google?

August 23, 2004
Brice Wightman

Stocks were mixed Monday in
mostly directionless trading.
Oil prices made a one-week low but the effect was
tempered by a disappointing sales forecast from WalMart.
Volume was light; some traders, as well as thousands
of New Yorkers, are taking off until the Republican convention — held in NYC —
is over. Oil closed near $46 as Iraq resumed exports from its Southern terminals
and restarted its Northern pipeline. Putin told Bush that Russia would boost oil
exports.

Institutional Shareholder Services says that Google
(
GOOG |
Quote |
Chart |
News |
PowerRating) ranks at
the bottom of the S&P 500 in corporate governance; the company is expected to
join the S&P 500 shortly.

A survey by Merrill Lynch indicates that global
money managers’ outlook for corporate profits is at the worst levels since April
2001. Of the 293 managers surveyed, 51% said they thought corporate profits
would decline in the next 12 months, and 32% said they would improve.

Mary Meeker –through her close
relationship with the company’s founders — played an important role in helping
Morgan Stanley underwrite the Google IPO.

The City of San Francisco has petitioned
the FDA, warning that the use of anti-impotence drugs such as Viagra may
increase the rate of sexually transmitted diseases, including HIV.

Banking on a Google coattail effect,
venture capitalists are searching for the next hot search company. Eurekster
hopes to make searches more relevant, Groxis hopes to make searches
easier to navigate, and Dipsie plans to access the “deep web.”

A new report from CSFB says that for every $10
rise in oil prices, consumers’ disposable
income is reduced by 1/2%.

Moody’s said credit card delinquencies are at a
4-year low, with June marking the 11th consecutive month of declines.

Dow	-37.09	10073.05
S&P 500	-2.67	1095.68
Nasdaq	+0.68	1838.70

10-year Notes were -105 at 112 125

The dollar
was +0.93 at 89.11

Gold was -0.90 at 410

Crude Oil was -0.72 at
46.05

Volume was 1.02 billion
on the NYSE and 1.22 billion on the Nasdaq.

Market breadth was mixed.

NYSE	Issues
Advancing	1212	Up Vol 365
Declining	2091	Down Vol 639
Ratio	1.72	1.75
Nasdaq
Advancing	1278	Up Vol 693
Declining	1824	Down Vol 514
Ratio	1.43	1.34

Stocks in the News

WalMart
(
WMT |
Quote |
Chart |
News |
PowerRating) same store sales were worse than expected and the
company lowered its August sales forecast, citing slower back to school sales.

FedEx
(
FDX |
Quote |
Chart |
News |
PowerRating) raised its earnings forecast for Q1 and for the year,
citing strong demand.

Mylan Labs
(
MYL |
Quote |
Chart |
News |
PowerRating) received tentative
government approval for generic versions of two drugs.

Business Objects
(
BOBJ |
Quote |
Chart |
News |
PowerRating) approved
repurchase of up to 2 million shares.

Toys R Us
(
TOY |
Quote |
Chart |
News |
PowerRating) posted a loss; the company is considering getting out
of the toy business to focus on its Babys R Us unit.

Brice Wightman

Could One Of These Companies Be The Next Google?

BUY THE FEAR, SELL THE GREED

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