Baidu.com’s (BIDU) IPO, billed as China’s answer to Google, was up fourfold today from its $27 offering price. It broke $150 intraday.
For anyone who has been wondering if we are getting frothy in the markets, here’s your answer:
click for larger chart
chart courtesy of BigCharts.com
The WSJ reported that this was "the biggest first-day gain since the heady days of the dot-com boom," and noted that to find a comparable debut, "it’s necessary to go back to the last leg of dot-com hysteria."
While this doesn’t mean that the market comes to end next week (and it better not, because I’m traveling), it is hardly a sign of thoughtful contemplative investing by cool headed, unemotional traders.
If anything, this further confirms my negative market perspective into 2006, withthe top coming in the November December time period.
One of the more interesting items we’ve discussed has been the different pricing strategies that studios use with DVDs versus what the labels do with CDs.
The studios, to their credit, use a form of dynamic pricing — they intelligently recognize that a content item’s value is highest when first released, and then subsequently fades. That’s why DVD prices come down over time, to capture those marginal buyers. The consumers who will not pay $49.99 for Seinfeld Season 1 & 2, might pay $29.99.
The labels have mostly avoided this strategy — but perhaps that’s changing. I had just finished reading a post about Amazon’s conference call, and on it Amazon’s management discussed their Long Tail strategy. I went over to the site, and thru some random clicking and scrolling, noticed this little tidbit: a long list of interesting CDs for sale on Amazon for between $6 and $10:
Here’s my short list of favorite moderate priced CDs off of the Amazon sale:
Jack Johnson : Brushfire Fairytales – another great one — grab it.
Stripped — an under appreciated stone album
Tattoo You the same — kicked off the modern Stones, and it rocks
It’s Only Rock N Roll classic
James Brown – 20 All-Time Greatest Hits! If you you don’t have the 4 CD set, go with this
Bruce Springsteen – Greatest Hits I prefer the individual CDs, but if you want a full dose of Bruce in one shot, this is it.
Wish You Were Here I have the full box set, but after Dark Side of the Moon, this is it.
Motown an interesting twist on Motown
Fashion Nugget Killer album that introduced me to the band:
"He’s going the Distance, he’s going for speed . . ."