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Apollo, Goldman Back To Their Old Fleecing Ways, MetalsUSA IPO Bombs, Costs Goldman's Top Clients 8% In One Day
In the hubbub over the Greek default and the resultant market melt up, one thing was promptly forgotten - the IPO of a company that one year ago was on the verge of bankruptcy. PE firms are smelling the market top and are bailing out in droves from portfolio holdings, selling shares to those who can't get enough of this downtickless rally. Metals USA, a service center, went public at $21.00, coming to market above the indicated range of $18-20. Good thing lead underwriter Goldman did not tell the orderbook it was coming out with a Conviction Buy on the stock potentially as soon as yesterday (although certainly not today... at least not yet). Alas, not even the squid's soothing words of discounted comfort were enough to save this public offering from bombing, as the midline of this range is precisely where the stock closed - at $19.20, or over 8% down from the offering price. Some overzealous basic industries "experts" are now drinking their newly discovered deposits of unemployment courtesy of $3 happy hour pints.
And, in reality, who could have possibly foreseen a slight valuation discrepancy with the toller? After all, look at the stable bond price over the past two years. It's not like MUSA didn't have $200 million of equity value in March of 2009. Greanted, it was negative, but it was $200 million nonetheless.
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Speechless. GS would do that?
GS?
Reuters reports that KKR, Bain preparing for fresh IPOs. I'm not sure they're smelling a market top - more like they're hungry for performance fees after the long PE drought.
Leo, that's why KKR is divesting; the top.
You waiting for Buffet?
Fractional reserve stock. 100 receipts for every asset.
I thought that PE firms turned every company they touch into solid gold!
Certainly if they've loaded it up with crippling debt and are now trying to sell it, it must be a bargain! It must be just "too good of a value" for them to hold on to for themselves. How generous!
I didn't know a squid could talk through its beak.
I thought it stuck a tentacle up Blankfein' ass and pulled the strings like he was a ventriloquist' dummy.
With all that blood on the floor gushing from the Mt. Everest size pile of headless torsos, even Goldman is beginning to make the Mexican cartels look angelic.
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"Charles Zehren, a spokesman for Apollo, declined to comment on the slump in Metals USA shares. Michael DuVally, a spokesman at New York-based Goldman Sachs Group Inc., which was hired to arrange the IPO, declined to comment."
Oh really?
DOW / SP500 daily chart gives bullish signals as of Friday 9 April. Weekly chart still trends up but continues to warn of an overextended bear market rally.
http://www.zerohedge.com/forum/latest-market-outlook-0
http://i39.tinypic.com/34y4k6t.png