Google, Inc. (GOOG)

Google is the best search engine on the planet. I would say at a p/e of 34 or so, it is fairly valued. However, I will also say that internet advertising growth is scheduled to be 5-15% for the next 5-10 years, and less money goes to newspapers and tv and more goes to the internet. That means more growth to Google. Many of the Google's criticisms are unfounded, in my opinion. "Low barriers to entry" - this is false. To be a top search engine, you need a lot of computers and a lot of good people. "Anyone can make a search engine" - sure, but will it be as good as google's? "Click fraud xyz" - the reason google dropped purportedly is due to a lowering of clicks in january due to correction of click fraud. No company is better equipped to handle click fraud than Google. "Overvalued" - while google isn't growing at 60% due to scale, they could easily grow 20-30% revenues in the next 5 years, even with a recession, which makes them undervalued. If google grows at 10-15%, then they are right about where they should be.

There is one criticism of google I agree with - share dilution. As a google shareholder, I absolutely hate the dilution. I wish Brin, Page, and Schmidt would just take a salary, but they don't, I believe mostly because they save on taxes through their option plans. Even still, the dilution isn't enough to knock the stock down significantly. Google is poised for growth and it's p/e has never been cheaper. A buy at 460 or less.