May 22, 2012
Re "IPO falls short of the hype," May 19 As Facebook has so glaringly and extravagantly demonstrated, the IPO, or initial public offering, is no such thing. We might just as well call it an initial privileged offering, an IEO (initial elite offering) or an ICO (initial corporate offering). But we of the "public" had nothing resembling a chance. As the women of old who had to put up a hefty dowry to snag a wealthy spouse, Facebook could declare an initial dowry offering, or an "I DO!
May 18, 2012 |
Maybe the dumb money wasn't so dumb this time. The stock market did turn out to be a voting machine on Facebook on Friday (to quote Warren Buffett and Benjamin Graham), and the vote was thumbs-down on flapdoodle. Market pros will be debating the lessons to be drawn from the disastrous first-day trading in Facebook's initial public offering. But one lesson is that when given enough information, investors can find their way through fogbanks of hype. When a stock offering is as closely followed as Facebook's, it's much more likely that the shares will be fully valued than that they'll harbor hidden treasure.
May 8, 2012 |
SAN FRANCISCO — Dressed in his trademark hoodie and jeans, Facebook Inc. co-founder Mark Zuckerberg kicked off a cross-country roadshow to pitch his company's initial public stock offering. Hundreds of institutional investors stood in long lines Monday to pile into a ballroom at New York's Sheraton Hotel to hear the billion-dollar pitch from the 27-year-old chief executive before his company's hotly anticipated IPO. The meeting was closed to the media. Facebook is trying to build excitement for the IPO that in a few weeks could value the company at more than $96 billion.
April 24, 2012 |
SAN FRANCISCO — The rapid growth of Facebook Inc. showed signs of slowing in the first quarter, potentially cooling investors' fervor just weeks before the company's hotly anticipated initial public stock offering. Facebook generated $1.06 billion in sales, the second quarter in a row sales topped $1 billion. That represented a 45% jump from a year earlier but a 6% decline compared with the fourth quarter. The financial performance, the company's most anemic since at least 2010, fell below analysts' expectations.
March 8, 2012 |
Fender Musical Instruments Corp., the iconic company that has been making guitars in California since its inception in 1946, is seeking to raise $200 million in an initial public stock offering. In a filing with the Securities and Exchange Commission on Thursday, Fender said it intends to use the money to help pay down $246.2 million in debt and to acquire other businesses. Although its corporate headquarters are now in Scottsdale, Ariz., the company was founded in Fullerton and makes its American Standard Stratocaster and Telecaster guitars at a 3-acre manufacturing plant in Corona.
March 5, 2012 |
The euphoria surrounding a red-hot initial public offering often doesn't last long. Investors in Yelp Inc. may be discovering that. Shares of the Internet-review site declined nearly 15% on Monday, an about-face from their sizzling 64% surge on the company's first day of trading Friday. Yelp slid $3.59 to $20.99. It's common for IPO shares to cool down in the aftermath of a blistering IPO, and is not necessarily a bad sign for the long-term prospects of a company or a stock.