Q. What’s ahead for my shares of Google Inc.?
J.P., via the Internet
A. This free online search engine continues to innovate and invest in new businesses as it battles strong competitors.
Its powerful brand name and top-notch technical staff help keep it ahead of the curve. Having loads of cash doesn’t hurt either.
Shares of Google (GOOG) were up 95 percent this year through Tuesday after last year’s 56 percent decline. Clicks on its site rose 14 percent in the third quarter, and Chief Executive Eric Schmidt said, “The worst of the recession is clearly behind us.”
Google has been increasing advertising revenue from online searches through broader use of video and images.
It is permitting publishers to limit the number of restricted articles that readers can see free through its Google search engine, opening the door for publishers to charge for articles. Meanwhile, new services let readers buy electronic versions of books to read on cell phones, laptops and other devices.
In regard to Google’s open-source software offerings, Chrome OS software introduced for the holidays in low-priced portable computers makes it possible to start a computer in less than seven seconds. As with its Android OS smart phone software, the company believes offering it free will benefit its search advertising.
Consensus analyst rating on Google shares is between “strong buy” and “buy,” says Thomson Reuters, with 16 “strong buys,” 19 “buys” and three “holds.”
Americans used Google for 65.6 percent of “core” searches in November, compared with 17.5 percent for Yahoo and 10.3 percent for Microsoft, says research firm ComScore Inc.
Earnings are expected to rise 16 percent next year versus 11 percent forecast for the Internet information providers industry.
Q. What’s your assessment of Van Kampen Equity and Income Fund?
P.V., via the Internet
A. Under a $1.5 billion deal announced in October in which Morgan Stanley’s retail investment management business was sold to Invesco Ltd., this fund will move to Invesco, most likely midyear.
Lead manager Tom Bastian and his experienced team that handles stocks and convertible bond selections are expected to move to Invesco, while the manager of the fixed-income portion will remain at Morgan Stanley.
Through Tuesday, the $12 billion Van Kampen Equity and Income Fund “A” (ACEIX) had returned 27 percent in the last 12 months and had a three-year annualized decline of 1 percent, placing it around the midpoint of moderate allocation funds.
“Due to the transition I wouldn’t jump right into this fund, but it is a good idea for existing shareholders to wait it out,” advised Katie Rushkewicz, analyst with Morningstar Inc.
The portfolio, which is about 80 percent stocks, has outperformed 95 percent of its peers in the last 10 years, said Rushkewicz. The fact that it includes convertible bonds helps provide a bit more upside than bonds alone would, she said.
Nearly one-fourth of Van Kampen Equity and Income Fund assets are in financial services, with other concentrations in energy and industrial materials.
This 5.75 percent “load” fund requires a $1,000 minimum investment and has an annual expense ratio of 0.79 percent.
Q. I am confused by ads about free credit reports. What am I entitled to?
C.P., via the Internet
A. The Fair Credit Reporting Act guarantees you access to a free credit report from each of the three nationwide reporting agencies — Experian, Equifax and TransUnion — every 12 months.
You can request your free reports from the Federal Trade Commission at annualcreditreport.com; by calling 877-322-8228; or by mailing the Annual Credit Report Request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5283.
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Andrew Leckey answers questions only through the column. E-mail him at yourmoney@tribune.com.
