LinkedIn goes pubic this week and I have to say I think they have a great service. As for the IPO, I will only reiterate what Ben Graham and Warren Buffett say about IPO's- anytime investment banks take something public, you can be pretty much assured a buyer is not getting a bargain. The real important issue for LinkedIn is can they go from 200-250 million and 20-30 million in profits today to 1 billion and 150 million in profits 5 years from now? Should be interesting to observe- here is a nice article on LinkedIn founder Reid Hoffman-
http://techcrunch.com/2011/05/18/attn-entrepreneurs-mark-zuckerberg-isnt-the-role-model-reid-hoffman-is/
Is there another bubble in the making- the private placement market?
http://online.wsj.com/article/SB10001424052748703509104576329540363889356.html?mod=WSJ_hps_sections_tech
Could AIG be selling investors a bill of goods- sure looks like the government wants out:
http://www.bloomberg.com/news/2011-05-18/government-prays-a-bigger-sucker-is-out-there-commentary-by-jonathan-weil.html
Anyone ever notice that during the course of a week, markets go down X, up 1/2X, down 1/2X, up X, and flat and the net of it is nothing happens most of the time, except middlemen make lots of money.
As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.
Yale Bock, CFA
President, Y H & C Investments
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