|
the Google IPO is strange...
all kinds of rules were taken out that normally are set by securities companies to secure the stock price. $120 for a google share? How stupid is that... Its a silly idea to value it that high.
Also, the employees and owners do not have locked shares. They can sell a lot of them already at the beginning. Actually half of the 3.7 million shares sold on day one are from EMPLOYEES nto from underwriters!
In the next 6 months, there will be around 270 million shares that COULD be sold to the public. This is UNSEEN in IPOs.. its a MAJOR nono, since it basically MAKES the price drop.
I'm just wondering how far it will go down..
This is just another bubble waiting to burst... An SE company that makes 960 million in income with a market cap of 30 to 36 BILLION?! give me a break.
To keep this stock price up, they have to make more money VERY FAST... this is not going to be easy for them especially when they are getting competition from microsoft and others.
__________________
"Think about it a little more and you'll agree with me, because you're smart and I'm right."
- Charlie Munger
|