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I'm can't help but wonder if this a continuing corrective downtrend or some kind of 'death by a thousand cuts' scenario. I guess that's always the question to
by cantankerous 14y ago
I'm can't help but wonder if this a continuing corrective downtrend or some kind of 'death by a thousand cuts' scenario. I guess that's always the question to ponder when you're looking to get in, right?
- bunderbunder 14y agoA traditional "price rocketing up" IPO looks impressive, but it also means that the company left money on the table. If the company itself didn't really need the money anyway, its owners might not mind this since they can just wait until after the price pop to start selling their shares. On the other hand, the price slowly sliding down like it has for the Facebook IPO suggests that the company managed to earn a bunch of free cash by selling its shares at more than they were worth. So this price slide could actually be very good news, from Facebook's perspective. As long as the purpose of the IPO was to boost the company's balance sheet. If it was a pure ego-boosting exercise and the money didn't really matter, though, then yeah this is bad.