3 ms·
>I wonder what they were thinking when they filed the S-1. This-is-a-rickety-ship-that-won't-last-another-year-so-let's-cash-out-asap.
by macspoofing 7y ago
>I wonder what they were thinking when they filed the S-1.
This-is-a-rickety-ship-that-won't-last-another-year-so-let's-cash-out-asap.
- JMTQp8lwXL 7y agoI get the sense that with some of these companies, the time to IPO is the peak valuation the company will ever achieve. That seems to be the name of the game today, to maximize returns for early investors. Legally, I don't know if there is an issue with that, but I see a moral one: you shouldn't be bringing a company public if you can't think it will grow further. It's a misuse of the public markets. And we can count many companies in 2019 and 2018 who's valuations peaked at IPO.
- turk73 7y agoThis is precisely why I'll never buy IPO stocks ever again. I got tired of being someone else's bagholder. The IPO is just the final stage of the scam after all other monies are raised and profits are made.
- lmm 7y ago> Legally, I don't know if there is an issue with that, but I see a moral one: you shouldn't be bringing a company public if you can't think it will grow further. It's a misuse of the public markets. How so? The point of a market is for willing sellers to make deals with willing buyers. What person would sell a company (or any asset) when they thought the public market undervalued it?
- JMTQp8lwXL 7y agoWell, in the case of WeWork, a current holder of WeWork stock might "undersell" it because their basis is already so low. It's a huge profit, and you get real, hard cash in exchange for the security. It's not a bad trade if you believe the public market won't believe in your business (regardless if you think it's the best thing ever), and you also want millions of dollars.