Alphabet Inc. (NASDAQ:GOOG) has a $115 billion pile of cash that could be used to boost its stock
Google parent company Alphabet has been a cash-generating machine over the past few years and can use its stash to boost its stock, Jefferies says.“Despite often heavy investments in many initiatives, some with very long horizons, Google’s net cash balance (including investments, less debt) has grown massively,” said Jefferies analyst Brent Thill in a note distributed Tuesday.“In the last 10 years (2008 to Q3 of 2018), Google added ~$US100 billion to its coffers – from $US16 billion in ’08 to $US115 billion in 3Q18.”
By Thill’s calculation, Alphabet, which became Google’s parent company after a 2015 reorganization, generated $US135 billion in operating cash flow from 2015 to the third quarter of 2018. That’s 85% more than the operating cash in the prior 4-year period. Despite the company’s heavy cash spend in capital expenditure ($US51 billion), share buybacks ($US17 billion), and mergers and acquisitions ($US3 billion), it still had $US115 billion net cash on its balance sheet as of third quarter of 2018.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,088.34.
The projected upper bound is: 1,156.01.
The projected lower bound is: 1,023.92.
The projected closing price is: 1,089.97.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.6847. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.80. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 73 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 55. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 28.440 at 1,089.060. Volume was 31% below average (neutral) and Bollinger Bands were 34% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,079.99 1,054.15 1,116.34
Volatility: 28 40 33
Volume: 1,317,734 1,794,627 1,658,153
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 2.4% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 16 periods.
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