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The Second Dot Com Bubble Has Now Burst
It is hard to believe that the first dot com bubble, so vivid to most semi-veteran traders, occurred over a decade ago. What is even harder to believe is that courtesy of the record liquidity bubble created by the Central Planning mafia, 2011 has already seen not only the second dot com bubble, but as the table below demonstrates, its bursting. Of all the dot com 2.0 IPO to hit the market in the past 3 months, the average return is now down 20%, but that has not prevented an underwriting syndicate comprised of the TBTFs to make billions in underwriting fees. Luckily, the fervor that previously had gripped some of the more volatile precious metals, and since spilled over into new public issues, has popped. Incremental cash will now be nearly impossible to get. To all companies that managed to take advantage of momo traders who have a memory of 15 minutes or less, congratulations. To everyone else: get in line for QE3. Wink, wink Groupon.
h/t John Lohman
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Which one is the Weiner in?
Probably Adul... i mean friendfinder.
He's not; he pulled out.
Somehow I doubt he finished his 30 day free trial...
That was quick. Usually lasts a year or more. :)
Something is up here, this market is very strange acting right now. Am safe in port and staying that way.
http://www.thestreet.com/story/891820/the-winners-of-the-new-world.html
Truth, perfect, just perfect, and to think he is still walking the streets, a free man.
And now he says he doesn't like Pandora because they don't make money. Well better late than never I guess.
roll 212
<span style="font-weight:bold;">Bear Stearns is fine!!!</span>
http://www.youtube.com/watch?v=o3FVBKic5Ek
I am finding the almost perfectly sinusoidal pattern of yesterday and today's ES interesting.
Galloping Gertie?
I know AAPL is not the market but for me it is always a tell.
And AAPL's 20DMA just broke its 150DMA - a Weinstein moment if ever I saw one.
You should put AIG in there to...its in imagination world also.... We should probaly nuke it..
Enron:
https://theequalizerpost.files.wordpress.com/2010/11/enron.jpg
http://adammclane.com/wp-content/uploads/2008/03/limitations.jpg
http://www.thedofc.com/assets/shop/a_dofc_enron_folded.jpg
https://pab58.files.wordpress.com/2010/05/enron1.gif
http://www.lowdensitylifestyle.com/media/uploads/2010/04/MeltingCow.jpg
You should put AIG in there to...its in imagination world also.... We should probaly nuke it..
That was quick. Max Keiser said it would last a few more years. The cycles are speeding up.
The bubbles are getting smaller and smaller - there's no air left to blow them with!
A few years! lol! The last time I heard Max Keiser was pumping Bitcoin as "the currency of the revolution!"
Q: Does this mean that Project Playlist is fucked?
A: Yes, Bob, we were dead after MySpace and FaceBook killed us.
Q: Why? We're just as good as Pandora.
A: Exactly, Bob.
Bwahahaha
Short them all. Let Sergey sort them out!
Totally O/T:
Hoist one for the Weiner!
May the door not hit him in the ass on the way out.
(As soon as he shuts up, that is.)
All the miners getting crushed and gold is down..... $2.00. Beyond words. 1/2 my kingdom to get the turn in miners correct.
I feel your pain greatly. Try more HL at 6.88, if it gets there.
Edit: ok, 6.50
My fingers are getting damn itchy, but unless BB pulls something out of his ass on the 22 or CHina goes nuts we are probably going lower.
AAPL through the 200-day for the first time in 2 years.
Saw that too. I'm no technician, but looking like lots of air to 200.
Does this mean that Jonathan Golub just slammed his forecasting speedster into reverse?
I fucking love this website. It's like you diatribe for me, to me!
Dot Con , bitchez!
+1240
he's dead jim
There are others upcoming as well. Facebook projected $100B. That's all the evidence I need.
Read somewhere that Facebook lost 6 million users in America last month.
They had their chance to go IPO and let it pass by.
LinkedIn at least saw the window of opportunity closing and went for it. Start buying puts or just short that baby, it's going to fall fast and hard.
Groupon? Idiots should have taken the Google buyout offer. Them turning it down reminds me of Yahoo! turning down Microsoft's buyout offer. D'oh!
OT: Hey, Bill! Was that you I saw climbing a lamp-post in Vancouver last night?
I know you were at the game 'cause they had a close-up of your manic mug on CBC. Quite the get-up.
Google is worse than calpers, they'll buy anything.
LOL
Except Google can't just go back to the state and request more tax payer dollars after taking a huge loss on their investments.
after calpers takes a bath on their GOOG holdings they damn sure will. lolololol
http://www.dailymail.co.uk/sciencetech/article-2003131/Facebook-100k-Brits-bored-site-deactivate-accounts-amid-privacy-fears.html
Facebook: 100k Brits bored with site deactivate accounts amid privacy fears
Volume picking up. I have been doing this for a week or two....and I am scared.
*(Harrumph)*
I remember the 1st dot com bubble burst....it wasn't that damn bad!
I actually enjoyed a decade's worth of eating Top Ramen, peanut butter and crackers, and spam sandwiches....while living in a tent in the mountains.
It builds character....and promotes the hoarding of precious metals.
Look at me now....I'm hoping to sign papers and close on Ted Kaczynski's old cabin anyday now.
Keep gamblin' "Bits-sez"....and you'll get yours as well (Party like it's 1999!)
"Smoke 'em if you got 'em" - Bill Clinton
http://www.youtube.com/watch?v=Bwc6L1a3Gdk&NR=1
Pound thru 1259, you pig!
Resilient mutha isnt it.
If we do crack tmr, next tues will be VERY interesting.
"Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come."
Your kid is going to fail the state test, so if we just don't test him, he won't be a failure!
haha
I love this post. Out of nowhere the US capital class suddenly recognises its been shitting around about its holy of holies once again : the high tech sector, once again in levitation.
Surprising that nobody saw this coming in USA. It was reported last week after around two weeks prior earlier, in french press. We are all selective in our view of things and subject to our own value systems.
Love to hear comments on this from the experts of hi-tech. What have the Rating companies been doing in their sectorial analyses?
Why fluffling, as always.
Well those rating companies do so much more than "fluffing" the greeks wouldn't you say..I love this selective vision of global capitalism...Lets hear your fluff on that.
"Stuffing" is more appropriate. DEEP and painful. But fluffing will have to do I guess in the US.
When Carlyle, Glencore and Facebook talk IPO, it's gotta be the top.
Shit. I wanted Pandora to wilt under the radar, because Groupon has NO chance for long term success. Groupon = WebVan
On bright side after getting zero allocation on linked and pandora - which I would have flipped on the open - I will get pitched hard on group on since
The banksters friends don't want in :D
Pud needs to start a new fuckedcompany 2.0.
GM feels left out.
Bears puke out again. Buy AAPL.
Pandora in freefall - currently down 17%
$14.40 last ticker
ouch.
13.10, but who is counting?
The Pandora employees! "Honey, looks like it will have to be a 1br instead of a 3br!"
Taking negativity to the moon I see ZH. Whatever did anyone on this forum ever create? 0.
Three companies, hundreds of jobs, and a little bit of wealth. What about you, douchebag?
You didn't answer the question!
BTW, some [semi-] retired CEOs do spend time writing intelligent comments here (and they can spell, too!) ... which is more than I can say for the trolls. Troll.
There's always yahoo finance boards (are they still active), or Jim Cramer's forums, or IBD, or tulips&itulipstoday, or MomoToday.com, right?
There's a seat for every ass, Mr. Hopium.
The IPOs of today are very different then during the 'IT-Bubble'. During the IT-Bubble the IPOs had no business plans no revenue & certainly no profits. Today you have business plans, revenue & profit in place. Might not be as high as McDonald's but so what? This is the purpose of the stock market to introduce capital to new corporations with good business models.
Wow, that might be just good enough to go into ZH Friday afternoon humour.
Linked In at open:
EBITIA: 13mio
Market Cap: 4bio (at $45 a share)
P/E: 307
Effective yield (return on equity): 0.3%
Inflation Adjusted return on capital: -2.3%
I can see why investors should be flocking to that one.
But what about capital growth??!!! I hear you cry:
YoY increase in EBITIA 1.46, compounded over 10 years = 44 times growth == 572mio
Assuming market cap stays constant (ha ha) 4bio/572mio = P/E of 7 = return on equity of 14%. It's just that you have to endure 10 years of losses to get there.
But hey, if it sounds like such a great deal, jump right on in!
When you run across some positive news, let us know. I'd really like to hear some good news after several years of this shit.
Three hundred douche bags, Millions of layoffs and a never ending hole of debt...I work for the FED!
This is the big moral crime underlying it all. First, they reduce the yield of bonds and other previously safe investments to near zero. Then, when every investor gets so desperate for yield they will buy any crap to try and get it, the TBTF banks dish it out to them in unlimited quantities for a hefty fee. So much easier than creating real economic value.
BTW, 20 minutes has passed so it’s time to update the chart again. P just printed $13.30.
the worst part of the whole effin deal is that the banks had enough capital to absorb ALL LOSSES in the original fiasco of 2008/2009. It would have wiped out all equity and haircut bondholders by 40-60%. But our wise overlords chose to keep bondholders whole and make you and i pay for it. SWEET!
So Pandora Media is just your average loser IPO (Average Return -19.5%, P -19.0%), at least of this bunch...
Middle men, as it seems, always make their cut.
Common - you can talk about a burst bubble when you see Linked In below $10 - NFW, LNKD trading at $68 (and this by a running out QE2)
Patience, grasshopper (do not take offense; I am not trying to sound condescending, but merely lifting a fabled line from Kung-Fu).
The new internet stocks are no better than the old.
It's all the same, recycled scam, with different terms & buzzwords, and it will end exactly the same way - with or without the alleged bottomless bowl of QE.
Some claim I'm pessimistic or cynical, but I swear that I'm only healthily skeptical and realistic.
And on that whole QEx to infinity thing, it's one of the most crowded trades, or anticipated trades, that I've yet to see in quite some time, IOW everyone is piling on the same side of the boat, IOW herd mentality runs strong on that meme, etc.
Usually, those majority votes in the world of equities and all things rigged and Ponzified end badly. But who knows....
I woudn't short any of these nor any other high beta stocks before OT2 is coming (and I'm quite confident that Greece is not a show stopper)... People are getting distracted and forget that the biggest Ponzi and risks are with the USD -> All assets are dawmed to go up (when priced in USD)
Aaaaaaaaand it's (will be) gone, it's (will be) gone it's all gone
That's how Dave rolls...
Feb. 18 call
www.tradewithdave.com/?p=5372
Why does YOKU get so little coverage?
If anyone has a historic chart of GM from start to finish I would love to see the link... (and I can't use GIS because it's a virus trap.)
I bet Pandora's CEO won't come back on CNBC anytime soon.
Facebook management are morons. If they listed 2-6 months earlier they could have probably raised an easy $20 billion and had a $100 billion market cap, then they could have all quit, converted to commodities, retired to the Bahamas and laughed at the morons who bought when shtf.
In this world the only ones who are more stupid are Groupon management who rejected a $7 billion offer from google for their stupid webpage.