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LinkedIn Shares Debut With A Near 100% Pop In Price, Annualized PE Over 1,000!!! Next Question, Whose Gonna Write Me Those Bubble Puts???
As reported by Zerohedge:
And so the internet bubble is back. The market cap of LinkedIn at this price, based on 94.5 million shares is $7,843 million. Taking out $297.6 million in cash means $7,546 million in Enterprise Value. The relevant metrics are:
-
- Revenues (pro rated annualized): $375.6 million or Price/Revenue 20.9x
- EBITDA (pro rated annualized): $53.2 million or EV/EBITDA 141.8x
- Net Income (pro rated annualized): $8 million or P/E 980x 1086x!
LNKD hits an intraday high of $92.99…
And to think, some feel I’m too hard on Apple and RIM! Apple is a
true global force still growing in the triple digits (albeit barely),
RIM produces massive cash (although quickly waning influence and share),
Google looks well positioned to literally take over mobile computing
and still growing like a small company and investing accordingly… Yet, add the PE of all of these companies up and multiply by 10x or so, and you’ll have a LinkedIn, except that it sports $8
million or so pro forma net income and has a growth rate similar to
Apple’s, a company nearly 100x larger and much more established!
This is worse than the tech bubble people. At least we had an economy to destroy with a bubble burst back then. We
are still sniffing smoldering ashes from the still bursting housing
bubble, while lying about the condition of our banks amidst a pending
global blowup of the triumvirate 3!. Oh, well… I guess if banks can’t
make money the old fashioned way (lending it with the expectation of a
risk adjusted profit based on debt service), then they’ll take a page
out of the history books and do the snake oil salesman thing ripping off
those impressed by flowery stories and legends of the Demi-Gods of Wall
Street. Yeah, I know. My left ass cheek needs smooching too. Well, the
only question left to ask is….
Whose Gonna Write Me Those Bubble Puts???
Hey, on the positive side, LinkedIn is better off that Facebook. You
see, Facebook will have to register the whole computer capable populace
of the world to justify the Au plated, Goldman Goldilocks fairytale
other wise known as marketing materials. LinkedIn will just have to grow
revenues 300% or so for about about a decade to make this JPM/MS
fairytale have a happy ending. No matter what, I betcha there will be a
moral to these stories for investors, though!
Related links, or what banks do when they can’t make money banking (traditional lending):
Reggie on Max Keiser discussing topics such as Goldman’s Facebook
offering that never was, what happens when its the banks that walk away
from a home, phantom banking profits that never were, and more
shenanigans that are the tour de force that is today’s banking system
and economy. To skip directly to the Reggie Middleton interview, move
to 11:55 in the video.
Related posts:
- Is It Now Common Knowledge That Goldman’s Investment Advice Sucks???
- The
Anatomy Of The Record Bonus Pool As The Foregone Conclusion: We
Plug The Numbers From Goldman’s Facebook Fund Marketing Brochure
Into Our Models which clearly demonstrated that this
offering was primarily for Goldman’s bonus pool integrity and
basically a ripoff for clients. In the following post, I declared “Here’s
A Look At What The Goldman FaceBook Fund Will Look Like As It
Ignores The SEC & Peddles Private Shares To The Public Without
Full Disclosure“ - Facebook
Registers The WHOLE WORLD! Or At Least They Would Have To In Order To
Justify Goldman’s Pricing: Here’s What $2 Billion Or So Worth Of
Goldman HNW Clients Probably Wish They Read This Time Last Week! - I Warned That Banks Will Soon Be Forced To Walk Away From Homes… Guess What! Monday, January 17th, 2011
- Less
Than 24 Hours After My Warning Of Extensive Legal Risk In The Banking
Industry, The Massachusetts Supreme Court Drops THE BOMB! Monday, January 10th, 2011 - As
Clearly Forecasted On BoomBustBlog, Housing Prices Commence Their
Downward Price Movement In Search Of Equilibrium Scraping Depression
Levels Tuesday, December 28th, 2010 - The
3rd Quarter in Review, and More Importantly How the Shadow Inventory
System in the US is Disguising the Equivalent of a Dozen Ambac
Bankruptcies! Wednesday, November 10th, 2010 - Banks,
Monolines, and Ratings Agencies As The Three Card Monte (Wall)Street
Hustlers! Its a Sucker’s Bet, Who’s Going to Fall for it in QE2? Tuesday, November 9th, 2010 - JP
Morgan’s 3rd Quarter Earnigns Analysis and a Chronological Reminder
of Just How Wrong Brand Name Banks, Analysts, CEOs & Pundits Can
Be When They Say XYZ Bank Can Never Go Out of Business!!! Sunday, October 17th, 2010
- Reggie Middleton On Max Keiser Discussing Tradable Fraud, Goldman’s Facebook Deal & Phantom Bank Earnings
- Reggie
Middleton and Max Keiser Discussing Goldman Sachs, the Super-Powered
race to the bottom three, banks as the “new tobacco companies” and
Choking on ZIRP - Facebook Becomes One Of The Most Highly Valued Media Companies In The World Thanks To Goldman, & Its Still Private!
- advertisements -
This is worse than pets.com ... to replicate linkedin all you need is a database (build it and they will come) and nicely done web server. Throw in 'pro' features for free, get money from advertising and there you go. Might be a little bit cheaper than $8 Billion...
Reasonable trading range for this POS is $1-5.
Right on Reggie !
they are drawing straws to determine who has to write the puts on this piece of fukushima. whoever gets main duty is probably at the bottom of the bailout list. or the top? bizarro world...
http://slv.collective2.com
First though, they are waiting for the message, "Sack's got yer backs!"
Excellent article, Reggie.
dup
It seems all the big money to be made in the US can be done only thru pure fraud ... how sweet ... greed bless America
1st day chart of sheeple shearing is beginning to take on this ominous pattern:
Λ
Even Goldman didn't want to risk holding this POS at over $45 for more than a day.
Wonder when options will be available? thinkorswim says usually three weeks to a month before they are listed? Does anyone know what the usual timetable is for an IPO?
Instruct me Reggie, love your work, I stand by to make the puts via my trading software.
LOL, Wut?
omg Reggie I'm dying here. Are we living in Charlie and the Chocolate Factory land or what?
AAPL / NFLX / LNKD
What else could we possibly need to solve the world's problems?
My B/D sucks so of course they won't have inventory of this to short of ages. Anyone know how long the syndicate banks have to hold this before they bounce for 100%+?
I would pay such a premium to be able to buy deep, deep puts on this POS right now, but alas, not yet...
Yes, I can't wait to buy some deep puts too. But wondering (like Reggie) who the sucker will be that will write them. Even if it stays aloft for awhile, it might pay to buy a few cheap way-out-of money (like $10 strike) every month and wait for the slaughter.
"No matter what, I betcha there will be a moral to this story for investors, tho." I bet there will too, Reggie. I think the moral is get the flock out of this market. Love your writting.