Todd Malicoat wrote a mini book on exactly what is going on with Google and exact match domains for Seo Moz. This is certainly worth a read and then maybe another read.
He goes into detail about things such as:
- Types of EMD
- Stop Words in an EMD
- Best Practices for EMD Domains
- Pros and Cons of EMD Domains
- EMD's and brand confusion
Malicoat has a pretty impressive resume:
Todd Malicoat (aka stuntdubl) has over 15 years of experience in internet marketing experience, having consulted on traffic acquisition at an executive level for organizations like the Public Broadcast System (PBS.org), Meredith Corporation, Thomas Industrial, Rasmussen College, Real Networks, and other large brands. As the SEO faculty chair for MarketMotive.com, Todd leads a comprehensive online marketing curriculum with other experts in all facets of internet marketing that is taught at Rutgers College, Rasmussen College, and many others. Todd has been an active international conference speaker at Search Engine Strategies, Webmaster World Pubcon, Search Marketing Expo, Affiliate Summit, Salesforce.com Dreamforce, SEMCon, and other industry conferences for several years on various aspects of online media including search and social media. Todd is also an avid offshore fisherman, and operates Marauder Sportfishing in Miami FL http://MiamiFishing.com
Read the whole article on Exact Match Domains here.