Google Village Proposed San Jose Development Map

Yesterday's San Jose Mercury News had a great article "Google’s village gets closer to reality" that discusses Google (GOOGL & GOOG) parent company Alphabet's progress on plans to build a new campus "village" near the Diridon Station transit hub. 

Mountain View-based Google and its development ally Trammell Crow have spent at least $221.6 million buying an array of properties on the western edges of downtown San Jose, within and near a 1-mile stretch that begins north of the SAP Center and reaches south nearly to Interstate 280. Among the major recent deals: The Google and Trammell Crow venture bought a large site that now is occupied by Orchard Supply Hardware, and the search giant has struck a deal to purchase a huge property from Trammell Crow that is approved for 1 million square feet, hundreds of residences and retail. Despite the extensive work and investments that have occurred already, construction isn’t going to begin tomorrow, Google executives cautioned.

Here is a map from the article

Given what has happened to property near Facebook, Tesla, Apple and Google campuses with near gridlock traffic making location close to the campuses extremely valuable, I expect San Jose real estate withing a mile of two of this development to see similar gains.  Older, established neighborhoods with large lots to build "McMansions" should do especially well if they follow what we've seen in Menlo Park (Facebook), Palo Alto (Tesla & HP), Mountain View (Google), Cupertino (Apple) and Los Altos close enough to ride a bike or a short drive to them all.  Actually, a bike ride from Menlo Park to Apple's new campus in Cupertino would be a great daily ride for exercise on Foothill Expressway.

Here is a larger Google Map of the area

Let's just hope that Google's plans are not the mark of a stock price top similar to what we saw in 2000 when Cisco (CSCO) made big plans to expand in the Coyote Valley and ended up with empty buildings near its current headquarters. 

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Santa Clause Rally!

Below are several charts showing the "Santa Clause Rally" that seems to be gaining steam. 

After buying the big decline a few months back, some stocks are already very, very close to taking profits already!

Santa Clause Rally! $SPY $SPX $LRCX $MSFT $GOOGL $INTC ChartsI sure hope nobody is missing out on all the fun as we are creeping back towards record highs again. Here comes Santa.....
Posted by Kirk Lindstrom's Investment Letter on Tuesday, December 1, 2015

This is my buy alert for LRCX on the most recent decline below $65.

How Much Did Google Pay For YouTube Video and When?

In November 2006, Google (GOOG Charts) bought privately held YouTube for $1.65 billion in stock. (Details below the charts of Google stock).

Word is out that Google will retire "AdSense video units" at the end of April because

"we've found that it hasn't been performing as well as we had hoped, so we've decided to focus our efforts on other opportunities to help publishers monetize their sites"

For commentary and my current outlook for GOOG, read "Kirk's Investment Newsletter"

From Google Closes Acquisition of YouTube

MOUNTAIN VIEW, Calif., November 13, 2006 – Google Inc. (NASDAQ: GOOG) announced today that it has closed its acquisition of YouTube, the consumer media company for people to watch and share original videos. In connection with the acquisition Google issued an aggregate of 3,217,560 shares, and restricted stock units, options and a warrant exercisable for or convertible into an aggregate of 442,210 shares, of Google's Class A common stock. The number of shares of Class A common stock issued and issuable by Google was calculated by dividing $1.65 billion less certain amounts (approximately $15 million) funded to YouTube by Google between signing and closing by the average closing price for the 30 trading days ending on November 9, 2006. 12.5% of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations.

Disclaimer: I bought Google stock for the first time at $310 per share for my own personal account and "Kirk Lindstrom's Newsletter Explore Portfolio." See this pdf for an example of a recent newsletter buy alert for GE. I may sell or take profits in these shares at any time and will probably only announce it to my newsletter subscribers.

Update 3/1/2017:  Google's Stock split 2-for-1 since this article so my $310 purchase price is $155 after adjusting for the stock split.  Here is an updated chart

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