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Here's How Google Missed The Chance Of Going Up 10-15% Today

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Renowned investor and founder of O'Leary Financial Group, Kevin O'Leary was on CNBC to discuss Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s new holding company, Alphabet Inc.

Two Reasons

"I'm kind of disappointed in this restructuring because there's two, I think, risks that Google I believe hasn't taken into consideration," O'Leary began. "I don't own the stock for two reasons: it's a dual voting class structure, that means I don't get one share one vote and I've never owned companies that put that in place for a wide range of reasons, this being one of them, and of course it doesn't pay a dividend."

The King Has No Clothes

He continued, "What'll occur now in the January quarter is that I can look at this and say potentially, the king has no clothes on all the moonshots that you are spending $5 or $6 billion of shareholder money and the outcome is unknown. If I want an investment like that, I would put my money into venture capital of which there's many different structures I could choose. There's great venture capital firms."

Could Have Gone Up 10-15%

"In fact, the opportunity I thought would have worked and for me would have made me a shareholder this morning would have been if you separated these companies.

"Google, which makes about 92 percent of everything in that company and separated it and took away the dual class voting, so that it became a standard common share with a 2.5 percent dividend. Instead of going up 4.6 percent, that would have gone up 10 to 15 percent because the most coveted asset in the world today is a growth equity with a dividend," O'Leary said.

Posted-In: Kevin O'LearyCNBC Dividends Media Trading Ideas

 

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