The second meeting of IAG last Friday, January 27th, was another enjoyable presentation by Matthew Lee and Michael Lee on Google (GOOG). This meeting was attended by over 80 members, and after a wonderful presentation there was a very lively discussion on the merits of Google, and whether it would be good addition to either portfolio. The biggest concern raised during the question and answer session was the centered on the fact that no one knows how fast Google will grow in the future. Based on this, there is no possible way to model out the future cash flows and come to an accurate present value for the firm. As a result, Google could only be used as an earnings play. However, as events would have it, Google missed their earnings target on Tuesday evening, and opened 12% down the following day. At the meeting there was talk of buying Google incase they missed earnings, and riding it back up to previous levels. However, this route was not chosen, and Google was not included in either portfolio.
Coming up later tonight is the Boston Beer Company (SAM), presented by Vladimir Vukicevic, Stephen Gnoza and Stephen Polito. This should be a very interesting presentation as the company produces the various lines of Sam Adams beers. Based on a sneak preview of the valuation, this company has a good chance of getting into the portfolios.
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