4 ms·

I applaud Mulesoft for going public. Too often today large (well past series C) tech companies (I won't name any names) refuse to go public and instead continue

I applaud Mulesoft for going public. Too often today large (well past series C) tech companies (I won't name any names) refuse to go public and instead continue to take private equity and foreign investment and prop themselves up on absurd valuations with no-checks and balances. Some of these companies are absolute dog shit, yet they continue to receive unlimited funding and insane valuations in a vacuum with no market to short them. Wall Street calls bullshit when they see it, and smart people short bad companies when they find them. Silicon Valley doesn't provide a way to short these propped-up companies, they just continue to self-promote themselves on private equity and foreign investment. Kudos Mulesoft and best of luck.

hkmurakami 10y ago
There are rumors of Dodd-Frank getting repealed [1]. Afaik Dodd Frank had increased the reporting burden of companies to the point where it was much more difficult to IPO at a .com era revenue stage. So maybe its repeal will have the side benefit of allowing young but operationally strong companies to use IPO as a viable fundraising avenue again. [1] though the Wall Street implications worry me.
- nodesocket 10y ago
  I believe the market has already baked in Dodd-Frank being repealed. https://www.google.com/finance?chdnp=0&chdd=0&chds=1&chdv=0&chvs=Linear&chdeh=0&chfdeh=0&chdet=1487376071020&chddm=26588&chls=IntervalBasedLine&cmpto=NYSE:JPM;NYSE:MS;NYSE:GS;NYSE:WFC&cmptdms=0;0;0;0&q=NYSE:C&&fct=big&ei=xI6nWOHNL8n_jAHphIqQBg https://www.google.com/finance?chdnp=0&chdd=0&chds=1&chdv=0&...
- nsp 10y ago
  I thought Sarbanes-Oxley, which added a lot of reporting/disclosure requirements for public companies and was passed in the wake of Enron and Worldcom scandals in the early 2000s was the primary driver behind the drop in IPOs? What provisions in Dodd frank are there that effect this?
  - hkmurakami 10y ago
    Whoops I think I got them confused!!! :(
- bogomipz 10y ago
  Dodd Frank was intended to make the derivatives markets more transparent and prevent banks from taking excessive risk. I don't think it has had any effect on the IPO market or tech companies at all.
jfoster 10y ago
Is it really smart to short an over-valued dud? What happens if they continue inflate their valuation significantly?

hkmurakami 10y ago

There are rumors of Dodd-Frank getting repealed [1]. Afaik Dodd Frank had increased the reporting burden of companies to the point where it was much more difficult to IPO at a .com era revenue stage. So maybe its repeal will have the side benefit of allowing young but operationally strong companies to use IPO as a viable fundraising avenue again. [1] though the Wall Street implications worry me.

nodesocket 10y ago
I believe the market has already baked in Dodd-Frank being repealed. https://www.google.com/finance?chdnp=0&chdd=0&chds=1&chdv=0&chvs=Linear&chdeh=0&chfdeh=0&chdet=1487376071020&chddm=26588&chls=IntervalBasedLine&cmpto=NYSE:JPM;NYSE:MS;NYSE:GS;NYSE:WFC&cmptdms=0;0;0;0&q=NYSE:C&&fct=big&ei=xI6nWOHNL8n_jAHphIqQBg https://www.google.com/finance?chdnp=0&chdd=0&chds=1&chdv=0&...
nsp 10y ago
I thought Sarbanes-Oxley, which added a lot of reporting/disclosure requirements for public companies and was passed in the wake of Enron and Worldcom scandals in the early 2000s was the primary driver behind the drop in IPOs? What provisions in Dodd frank are there that effect this?
- hkmurakami 10y ago
  Whoops I think I got them confused!!! :(
bogomipz 10y ago
Dodd Frank was intended to make the derivatives markets more transparent and prevent banks from taking excessive risk. I don't think it has had any effect on the IPO market or tech companies at all.

jfoster 10y ago

Is it really smart to short an over-valued dud? What happens if they continue inflate their valuation significantly?