First up -- thanks to Dr John for his comments on my last note. Very good stuff indeed. If you have any interest in Techne or in Contango then please check out his comments. As he says I screwed up not buying more TECH on the pull back because its such a great business but expensive so buying a dip helps.
Google -- haven't read the transcript of the call yet but my initial thoughts would be that we have completed the chart pattern -- went from $500 to $700+ and now we are back to around $500. The business is still growing faster than virtually any other company with a market cap of $175 billion. or a double digit billion dollar revenue base. Internet advertising has some secular growth tail winds but those don't matter when the economy is slowing down. As a long term holder, I expect the stock will work its way back towards $600 in a rally. If the market drops to the lows or worse, then GOOG will continue to struggle.
TSRA was up after hours, which was nice although I'm not sure why the reaction other than the quarter was reassuring. They remain confident in the litigation and its almost here. You can see the stock has been doing better as we get closer to the trial. I have seen estimates of what is at stake -- they could see a dramatic increase in their royalty annuity stream -- enough to almost double the size of the company. I hope those numbers are right because that could drive a stock price of near $60.
The hope obviously is for settlements -- why go through the expense and length of a trial when a settlement finishes everything. Generally in the past, litigants have settled right before the trial started -- so in a few weeks.
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