Barry Schwartz in one of his recent posts talked about expired domains and domain name transfers in Google. The topic has been discussed for a long time.
On the same topic Google's Matt Cutts had earlier said:
“If you buy typos, I'd 301 them to your main site. Even things that you win in UDRP arbitration can be 301'ed. For example, if someone bought porngoogle.com and Google won it in UDRP, it would make sense to 301 it to your main domain.
What I *wouldn't* recommend is try to register unrelated expired domains in an attempt to get those pre-existing links to count toward your domain. I would also avoid registering-and-301'ing typos of competitors' domains or other completely unrelated domains.â€
After a thorough analysis of all these comments and scenarios, it is still not clear about the exact Google's methodology to handle expired domains.
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Navneet Kaushal, CEO PageTraffic is a trusted authority in the search engine marketing industry. He is a featured author at Web Pro News, Search Newz, Website Notes, DevWebPro, SEO Article and Web Help Now among many others.
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I think Matt is dead on. There are so many times when I see people try to buy up all their competitor’s domains. This is especially prominent in the automotive industry. Many people just don’t seem to get it.
Basically, if your mother wouldn’t approve of it, then DONT DO IT!