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Newly Public Ruckus Blames IPO Bomb On, Wait For It, Hurricane Sandy

Tyler Durden's picture





 

If the entire world goes full retard, is any individual instance of full retardedness unique? This is what today's IPO bomb, Ruckus, which despite (or probably due to) much praise and lauding from CNBC's Bob Pisani, bombed 20% on its first day of trading, is hoping for. The company which picked the wrong time and wrong place to go public and thus, to realize first hand that the US stock market has for years not been a market in any normal sense of the word, but merely a HFT-manipulated policy vehicle for the central planners, decided to pull ye olde scapegoating trick, and blamed it on, cerebral hemorrhage spoiler alert, Hurricane Sandy.

From the WSJ:

[RKUS] has been among the more closely followed public offerings this winter. The San Francisco-based company aims to improve spotty commercial wi-fi coverage for customers such as Time Warner Cable TWC -0.37%, and sports for the first nine months of this year a top-line revenue growth rate of 91% so far this year, compared to last year, according to its prospectus.

 

But during the critical road show phase of an IPO, when a company is shopped around to potential institutional investors, its executives had their plans interrupted by Superstorm Sandy, which pushed the deal back a week, according to Selina Lo, Ruckus’s chief executive.

 

Had the deal come a week or two earlier, it may have avoided some of the broader market turbulence that has helped drive its stock down in the first day of trading.

 

Stock have tumbled since the election, and Ruckus’ IPO “certainly was impacted by the macro environment,” Ms. Lo said. “Some investors were preoccupied.”

 

“A number of companies this week have pulled back, but we decided to go because there was a lot of investor interest,” said Ms. Lo.

It turns out there wasn't. But who is to say an executive is at fault for taking a horrible executive level decision. Nobody, that's who.

What is more relevant is if corporate success or failure now depends solely on what phase moon is in, the direction the wind is blowing, and who won Ohio, maybe it is time to stop pretending the market is a market, stop pretending that this time it's different and a centrally-planned market can possibly work 100% historical failure rate notwithstanding, and just shut it all down and call it a day.

But in the meantime, why take responsibility for anything - just do what the US government itself is now doing with every worse and worse data point, and blame it all on a regional storm. Surely, the company's shareholder team will be delighted with this explanation and do nothing to shorten Ms. Lo executive career. Because after all, when other people's money is at stake, who really cares.

 


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Fri, 11/16/2012 - 18:02 | Link to Comment jeff314
jeff314's picture

Fuck you Sandy and Fuck you Bernanke

Fri, 11/16/2012 - 18:09 | Link to Comment Stoploss
Stoploss's picture

Are we blaming the last half of Q3 on Sandy too? I've lost track.

Fri, 11/16/2012 - 18:12 | Link to Comment The Gooch
The Gooch's picture

<<< Faceruckus

<<<Ruckusbook

Fri, 11/16/2012 - 18:18 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

She is a good operator and their products are amazing notwithstanding Sandy

 

here is a vid of her earlier today  does not jive with the WSJ report though the interview was before the cliff dive

http://www.bloomberg.com/video/lo-on-ruckus-ipo-mobile-internet-patent-l...

Fri, 11/16/2012 - 18:40 | Link to Comment francis_sawyer
francis_sawyer's picture

I sit & wonder 'Why-eye-eye-oh-why"...

~~~

http://www.youtube.com/watch?v=-yaW5xw4IVk

Fri, 11/16/2012 - 19:34 | Link to Comment knukles
knukles's picture

Sandy sure put a damper on shit...

Fri, 11/16/2012 - 20:09 | Link to Comment Fredo Corleone
Fredo Corleone's picture

Bob Pisani has completely missed his calling.

His penchant for peddling the latest hot "item" is much better served on CNBC's sister network, ShopNBC.

http://demicouture.ca/wp-content/uploads/2010/11/shop-nbc-costume-cockta...

Fri, 11/16/2012 - 18:16 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

Wage Equality – An Occupy Wall Street take:

It is a shocking static that many CEOs and managing directors are earning millions a year others earn mere 5 figure salaries. Why can't average people ALSO earn luxuriously high salaries??? That’s all OWS protesters are asking ... 
Meanwhile libertarians choose to attack government workers earning a mere 100k pension after 30 years' solid contribution to society. Firemen, postal workers and policemen work harder than anyone else and all they ask in return is a few benefits, a fair salary and job security. Wages should be determined by the WORKERS, NOT employers.

Fri, 11/16/2012 - 18:17 | Link to Comment Bay of Pigs
Bay of Pigs's picture

MDB = Sandy

Fri, 11/16/2012 - 18:38 | Link to Comment Rainman
Rainman's picture

Why don't we just hang the whole bunch of leeches on this list and sort it out later

Fri, 11/16/2012 - 19:06 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

MDB = troll...

Sat, 11/17/2012 - 02:11 | Link to Comment jballz
jballz's picture

 

I gotta admit he is one of my favorite trolls.

Some asshole crossed my facebook feed today who said the only way the country can have a better infrastucture and clean water and combat climate change or some other shit, was for everybody (yes everybody) to pay a lot more taxes.

Not a troll, but real semi-human with a full name and the right to breed.

So I kind of found some solace in MDB's bullshit this evening. 

Sat, 11/17/2012 - 20:05 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

We are MDB

We are Legion ;o)

Fri, 11/16/2012 - 19:55 | Link to Comment nmewn
nmewn's picture

.

Fri, 11/16/2012 - 21:43 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Could you describe the ruckus, sir?

Fri, 11/16/2012 - 20:46 | Link to Comment stocktivity
stocktivity's picture

What's all the Ruckus?  ....and where the fuck are all the twinkies?

Fri, 11/16/2012 - 18:15 | Link to Comment Frank N. Beans
Frank N. Beans's picture

what's all this ruckus about?

 

Fri, 11/16/2012 - 18:20 | Link to Comment Mark Carney
Mark Carney's picture

Not sure why the executives are complaining? made their money now......

Fri, 11/16/2012 - 18:32 | Link to Comment Seasmoke
Seasmoke's picture

complaining about all their shares still locked up.....its painful

Fri, 11/16/2012 - 19:34 | Link to Comment knukles
knukles's picture

Ought swap them and their shares with respect to lock up

Fri, 11/16/2012 - 20:41 | Link to Comment dark pools of soros
dark pools of soros's picture

Zynga didn't have any problems swapping out...  nor Facebook I believe

Fri, 11/16/2012 - 18:16 | Link to Comment jekah
jekah's picture

They are absolutely right, excuse me - entitled - to blame Sandy, which made quite a ruckus and thus stole their thunder. I recommend suing NOAA.

Fri, 11/16/2012 - 18:16 | Link to Comment frugartarian
frugartarian's picture

i blame bush 

Fri, 11/16/2012 - 18:21 | Link to Comment helping_friendl...
helping_friendly_book's picture

Yes, for everything.

Fri, 11/16/2012 - 18:21 | Link to Comment centerline
centerline's picture

Does that mean FEMA coughs up the cash to make this one whole?  lol

Fri, 11/16/2012 - 18:22 | Link to Comment helping_friendl...
helping_friendly_book's picture

When can we start shorting it?

Fri, 11/16/2012 - 18:43 | Link to Comment 10044
10044's picture

too late bud...sorry

Fri, 11/16/2012 - 18:30 | Link to Comment Seasmoke
Seasmoke's picture

Mark Zuckerberg approves this message

Fri, 11/16/2012 - 18:32 | Link to Comment blunderdog
blunderdog's picture

Makes sense to me.  A lot of the money on the sidelines was blown away by the hurricane.

It might hold some appeal for the buy-and-hold types when it gets to the single digits.

Fri, 11/16/2012 - 18:32 | Link to Comment PLove
PLove's picture

Investors who attribute SANDY to the works of Mother Nature

listen through their assholes.

Fri, 11/16/2012 - 18:46 | Link to Comment infinity8
infinity8's picture

For fuck's sake - how does anyone keep a straight face anymore?

Fri, 11/16/2012 - 18:50 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When everyone has mercury poisoning it's hard to know what a straight face is.

Fri, 11/16/2012 - 20:46 | Link to Comment infinity8
infinity8's picture

You're right. I'm back now, after dinner, and not so cranky. I have to talk to way more people than I'd like to if I want to make any $$ and, anymore, I feel like I blended up some boomers and o.j. and can't tell if people are being serious. Here's a couple for you that have been on my mind mr. john jimi:

john-

https://www.youtube.com/watch?v=nVmCbwlRo2Y

jimi-

https://www.youtube.com/watch?v=UoKdXXSYYfE

Fri, 11/16/2012 - 18:50 | Link to Comment cougar_w
cougar_w's picture

Heh. I saw them move into their new headquarters, I was wondering what they did. Tough space to be in, actually, and I would not have gone IPO at all were I them. That's the problem with taking investment money, the venture guys want a liquidity event ASAP no matter if it makes sense or not. A partner in my current startup is all over getting investors so we can quit our day jobs and focus on coding, I wish he would shut up about it. I know exactly were that would dump us; a crap IPO, our business blown up, and both of us wanting our day jobs back within a year.

Fri, 11/16/2012 - 20:39 | Link to Comment dark pools of soros
dark pools of soros's picture

So you didn't get the memo..  Pinata Economics

smack and grab IPOs..  then start up another pump and dump.   Stop being such a snob with some 'viable' business model

Fri, 11/16/2012 - 18:59 | Link to Comment LeisureSmith
LeisureSmith's picture

Selina, how Lo can you go? A Lo point in your career. I bet the stock can go Lo'er. I'll stop now.

Fri, 11/16/2012 - 19:05 | Link to Comment nmewn
nmewn's picture

ROTFL!!!

Fuckin Pisani...easy money...almost as good as Krammer and his "charitable trusts".

Fri, 11/16/2012 - 19:05 | Link to Comment Piranhanoia
Piranhanoia's picture

Pis...Pison....   That's it,  Dave Chappelle does R. Kelly

http://www.youtube.com/watch?v=5vJ4zrB41mg

Fri, 11/16/2012 - 19:07 | Link to Comment monopoly
monopoly's picture

Oh MDB, you are a classic. Glad you are back. And you say:

"Meanwhile libertarians choose to attack government workers earning a mere 100k pension after 30 years' solid contribution to society. Firemen, postal workers and policemen work harder than anyone else and all they ask in return is a few benefits, a fair salary and job security. Wages should be determined by the WORKERS, NOT employers."

MDB you are just not getting it. I don't have the money to give you what I promised. I want to give you Disney World, Disney Land and an Island and loads of confetti as I promised but I just do not have the MONEY. So, I have to cut your benefits, vacations, health care and pension. Not because you are not doing a good job for us, you are. BUT I DO NOT HAVE THE GODDAM MONEY. GET IT!!! AND I am scared. I am scared that this fucked up country is going to be flushed down the toilet. So I am not spending, no cap ex. keeping funds safe, and preparing for the worst. My business is down 20% and govt. tax revenues are not there as we thought they would expand to infinity. sorry. DO  YOU UNDERSTAND.

Fri, 11/16/2012 - 19:08 | Link to Comment monopoly
monopoly's picture

Yup, she has got it. I am "preoccupied.". Still do not have the bunker built yet. lol.

Fri, 11/16/2012 - 19:14 | Link to Comment Rathmullan
Rathmullan's picture

There's a typo in the prospectus. "Ruckus" is wrong and the "R" should be replaced with an "F". And goldman and morgan and kraut bank did eactly that.

Fri, 11/16/2012 - 19:25 | Link to Comment Sphinx_www
Sphinx_www's picture

It is all Bush's fault.

Fri, 11/16/2012 - 20:20 | Link to Comment Downtoolong
Downtoolong's picture

This just gave me a great business idea. I'm going to hire myself out to take the blame for every failed IPO at $1million a pop.

Actually it's not even my idea. I got it from a bum I saw in Times Square years ago with a sign around his neck which read, "Curse me out for $2".

Pardon me, but, I just think I can make more money off a Wall Street version of the same gig.

 

Fri, 11/16/2012 - 20:35 | Link to Comment dark pools of soros
dark pools of soros's picture

Quick, unionize their workers so they can blame it on them!

Fri, 11/16/2012 - 22:47 | Link to Comment Good To Great
Good To Great's picture

Too bad about the IPO.  Their products are absolutely fantastic and my IT partners spec them wherever the budget allows.

Sat, 11/17/2012 - 08:04 | Link to Comment omi
omi's picture

So we basically have a broken IPO market. Other than private deals, where you may get a few deals, you can't really sell yourself for the best price if you're a company and you want to expand or sell.

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