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.