I particularly liked his post on IPOs:
Ever go to a Tower Record store, flip through the racks of discs made by
groups and artists you never heard of, and wonder: “who buys this crap?”
One might well ask the same question about one of the companies that stamps
out those discs: Warner Music Group.
wasn’t so much launched as it was thrown out a third-story window. Because
investors fled from the road shows, the number of shares sold and the original
price ($22 to $24 a share) were slashed sharply, to 32.6 million shares at $17.
But even that wasn’t low enough. WMG fell 3.5 percent on its first trading
And who was behind this steaming pile? Why, some of the same folks who
earlier this week brought us Lazard’s initial poor offering. (It’s already off
8.5 percent in just five trading days.) Um, isn’t Goldman, Sachs supposed to be
an elite firm? And if it’s so elite, how come the high-profile IPOs it shepherds
to market act like Chevy Chase doing Jerry Ford? (Hint: investors like it when
the company actually gets to keep some of the cash raised in the offering.)
Any clever ideas for what the acronym IPO stands for? "Initial Poor Offering" or "Institutions
Pissed Off" or "Investors Pooped On?" (I cannot take credit for any of these). Please post any other suggestions you have in the comments (and, the Adult filter is turned off — so feel free to go wild!)
Moneyblog is another blog to add to your linkfest of market/finance/economics related weblogs.