Posts filed under “IPOs”

Using IPOs to Measure Investor Sentiment

Columnist Mark Hulbert recently raised the question of what the rate of initial public offerings means for the stock market. He looked at IPOs and dividends as a broad way to evaluate investor sentiment. He used a variety of different data points to gauge if stocks were in a bubble. He also drew on (among other things) some interesting data from Jay R. Ritter, a professor at the University of Florida, who is an expert on IPOs. This led to some interesting observations.

Consider these five issues, in order of persuasiveness:

No. 1. Volume: In the first quarter of 2000, there were 123 IPOs. In the first quarter of this year, there were 58 — less than half as many, according to data compiled by Ritter.

No. 2. First-day returns: The average return for an initial public offering in the first quarter of 2000 was a blistering 96 percent. This year, only 22 percent.

To put this into broader context, have a look at these first-day percentage increases from that era based on Ritter’s research:  Continues here

Category: Investing, IPOs, Sentiment

Irrational Non-Exuberance

The endless chatter of bubbles and crashes continues unabated. Eventually, all bull markets come to an end, and this one must eventually as well. But as I sit down to write this, the Standard & Poor’s 500 Index yesterday hit yet another all-time high. U.S. markets continue to have good internals, strong breadth and broad…Read More

Category: Investing, IPOs, Markets, Psychology

When Markets Are Wrong

  My favorite chart on the website this week (so far) comes from Matthew Klein’s column: Is Yahoo’s Business Worth Less Than Nothing? And it’s filled with informative details. Yahoo! Inc.’s total value is represented by the first bar. If you subtract the value of Alibaba Group Holding Ltd. and Yahoo! Japan Corp. you are…Read More

Category: IPOs, Valuation

Once Again, The Narrative Fails

Late last year, we had a wholesaler from a major ETF firm in our office. At the time, the chatter was all about the upcoming Alibaba IPO. It was going to be (in his words) “huge, disruptive, incredibly powerful – and you cannot get any.” Never mind that IPO returns are on average mediocre or…Read More

Category: Cognitive Foibles, Investing, IPOs

Worst Twitter IPO Graphic Yet

Source: MSN   No, no, no, no, and one last no. Look, I get it, I really do: You are all excited — dare I say “atwitter”? — at the prospects of today’s big initial public offering. It is oversubscribed by 30X (or so we hear), priced at the high end of its range, and…Read More

Category: Digital Media, IPOs, Really, really bad calls

Twitter’s Path to IPO

click for larger graphic Source: Equity Zen

Category: IPOs, Web/Tech

Microsoft versus Google IPO Performance, Valuation

Click to enlarge: Source: Bloomberg   Fascinating comparison between Google and Microsoft gains since their IPOs from Dave Wilson. Earlier this month, Google managed to slip past Mister Softee in terms of market cap  (MSFT is now $244.8B vs GOOG $243.56B). Microsoft Corp.’s stock-market performance during its first eight years as a public company far surpassed Google. MSFT…Read More

Category: IPOs, Technology, Valuation

What’s Driving Facebook Stock Down to New Lows?

WSJ’s Rolfe Winkler stops by Mean Street to look at key reasons Facebook stock fell to fresh lows on Tuesday


7/31/2012 3:06:51 PM3:57

Category: IPOs, Valuation, Video

Facebook Analyst Coverage: Meh!

6 Buys, 3 Neutrals Average Price Target = $39 BofA/Merrill – Neutral – $38 PT Goldman Sachs – Buy – $42 PT Oppenheimer – Outperform – $41 PT JPMorgan – Overweight – $45 PT Piper Jaffray – Overweight – $41 PT Wells Fargo – Outperform – $37-$40 Range Credit Suisse – Neutral – $34 PT…Read More

Category: Analysts, IPOs, Valuation

Unfriended: The Facebook IPO Debacle

The highly-anticipated Facebook IPO was plagued with problems, potentially costing thousands of dollars to many small investors and further damaging Wall Street’s reputation on Main Street. A Wall Street Journal report.

(I have a small cameo in this)


9:50
WSJ 6/10/2012

Category: IPOs, Valuation, Video