Monday, February 12, 2007

Capital Research and Management Lowers Google (GOOG) Stake

Here is another interesting 13G. It is interesting because it's Google and its their 2nd largest shareholder.

In an amended 13G filing, Capital Research and Management disclosed a 6.3% stake (13.1 million shares) in Google (Nasdaq: GOOG). This is down from the 14.25 million share stake the firm held for the quarter ended September 30, 2006. Capital Research and Management is the second largest Google shareholder. Fidelity is the largest shareholder with an 11.3% stake.

While one large shareholder selling out is not a major red flag, it should be noted. If Fidelity starts trimming its stake I would be concerned. The same guys that ran Google up and absorbed all the selling from management can quickly leave major foot-prints in the stock on the way down. Also, Google's decision not to split the stock could end up hurting them if big players want out.

Google has been under pressure since reporting earnings at the end of January.

I love Google, but we all know who controls the market.

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