tag:blogger.com,1999:blog-4402283548766807872.post8311205699048164437..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: LinkedIn IPO- The linked get inThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4402283548766807872.post-29523637284200419042011-06-17T17:33:50.460-04:002011-06-17T17:33:50.460-04:00LinkedIn insiders probably had a true valuation, a...LinkedIn insiders probably had a true valuation, an irrational market did not. Considering the sp is now $65 and dropping, it is looking like the LinkedIn founders may not have lost out as much as it initially seemed.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1776091010964887882011-06-17T11:24:21.378-04:002011-06-17T11:24:21.378-04:00Interesting that your critique is that the bankers...Interesting that your critique is that the bankers made too much money with their exclusive access - isn't the real problem that LinkedIn had no concept of their own valuation, and sold their company for $0.30 on the dollar? If not for this fact, there'd be no easy money, and presumably no rant to follow.<br /><br />That the institutions worked for their own profit is no surprise, and I have no issue with it - when the market throws a thousand pitches each day I don't need to swing at every single one. I'll be the one picking up profits when the institutions get scared and sell assets at silly prices down the road.theskujhttps://www.blogger.com/profile/11244192903228352082noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-31268157360703824942011-06-17T08:13:10.792-04:002011-06-17T08:13:10.792-04:00Mike, interesting point. But you have to remember,...Mike, interesting point. But you have to remember, most founders paid $1 for their shares and must hold a certain percentage of restricted shares on the IPO, so they win win. They get proceeds on their fouders shares that are all profit and if the IPO takes off, they have their restricted shares that benefit. Yes,I think setting an IPO price on a LinkedIn IPO is unpredictable, but most are not so unpredictable and remember, the initial purchasers mutual funds, hedge funds etc, would not ever pay the inflated prices that the market does the next day in most cases.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67374376320176359292011-06-17T07:39:29.249-04:002011-06-17T07:39:29.249-04:00Definitely doesn't seem fair.
The other thing...Definitely doesn't seem fair.<br /><br />The other thing I wonder about these IPOs is why the initial share price wasn't set higher. Perhaps it's not all that predictable what will happen with an IPO, but if I were one of the Linked-in owners, I'd be a bit annoyed considering it looks like the offering was under-priced.Mike Holmanhttp://www.moneysmartsblog.comnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-84154370146478810192011-06-16T14:42:05.749-04:002011-06-16T14:42:05.749-04:00Hey CC, I agree. We peasants are never allocated a...Hey CC, I agree. We peasants are never allocated anything of value in IPO’s. However, with Private Placements of small cap stocks I have followed and know extremely well, I will occasionally buy into the PP to get the warrants. I will then trade the shares I have on hand and when the trading restriction on the PP shares is removed, trade the PP shares. I then play for free with the warrants. However, there is always the risk of the shares dropping during the typical 4 month hold restriction.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-17363286442690343442011-06-16T13:35:23.554-04:002011-06-16T13:35:23.554-04:00I never express an interest in IPOs for the simple...I never express an interest in IPOs for the simple reason that if it's a "hot" IPO, I won't be allotted any shares. If it's a stinker (think Vonage) I won't be able to flip it. So, it's better for us small fries to ignore the IPO market altogether.Canadian Capitalisthttp://www.canadiancapitalist.comnoreply@blogger.com