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"All Time High" Is Now A Market Condition: Box Pulls IPO

Tyler Durden's picture




 

It appears, despite the Dow closing at record all-time-highs, 'they' are running out of greater fools. As WSJ reports, Box Inc - the online storage startup - is delaying its IPO plans "after a sudden weakening in demand for technology stocks." It seems 'all-time-highs' is now not enough, as people close to the company said the offering may not happen until June, and no timing has been set... we assume all-time-higher-highs are required as WSJ notes, investors' love affair with cloud software companies is waning (as the greatest fools are all tapped out... or waiting for Alibaba's 'easy money').

 

 

As WSJ reports,

The online-storage startup is delaying its plans for an initial public offering after a sudden weakening in demand for technology stocks.

 

Box's March 24 IPO filing made it eligible to list shares as early as April, but people close to the company said the offering may not happen until June, and no timing has been set.

 

A Box spokeswoman declined to comment, citing the IPO quiet period.

 

...

 

"Eighteen months ago that company could have gotten away without a path to profitability," Kevin Stadtler, principal at investment fund Stadtler Capital Management in Fort Worth, Texas, said of Box. Now, he said, "there's not a public market for companies like that."

 

Adding to Box's challenge, IPOs in the broader software category have struggled. Software-company IPOs in 2014 were down about 20% from where they closed trading in their first session, according to Dealogic.

Of course, growthy firms are not taking this lying down...

"None of the fundamentals have changed, it's just that the multiples got out in front," said Tony Zingale, chief executive of Jive Software Inc., a maker of online-messaging tools sold to companies.

Nope - the fundamentals are just as fantastical as ever... and people are realizing.

 

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Thu, 05/01/2014 - 10:34 | 4715882 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The magical potion is wearing off and it turns out to be poison. Delusion has no limits.

Thu, 05/01/2014 - 10:41 | 4715902 furgheddubouddit
furgheddubouddit's picture

I think the real 'market condition' they're waiting for is an announcement by Yellen that the taper is off and that the FED will continue to pump printed toilet paper into Wall Street until at least 2020.

Thu, 05/01/2014 - 10:44 | 4715912 SAT 800
SAT 800's picture

I think the Fed is sitting on the Tapered End, and they're going to be very careful where they put their weight. I think they'll have a great resistance to pausing the taper; I think they're a little nervous about how deep a hole they've dug themselves already.

Thu, 05/01/2014 - 10:55 | 4715940 Divided States ...
Divided States of America's picture

Theres already too much supply of stocks out there...PLUS POMOs are now down to 45bn a month...the buying powder is drying up.

Thu, 05/01/2014 - 14:13 | 4716946 hobopants
hobopants's picture

With Belgium picking up the slack they will probably continue to "taper" so they can declare mission accompilshed recovery achieved.

Thu, 05/01/2014 - 10:35 | 4715886 Obama_4_Dictator
Obama_4_Dictator's picture

Simpson's quote "ha ha!"

Thu, 05/01/2014 - 10:35 | 4715891 q99x2
q99x2's picture

You can make houses out of boxes.

Thu, 05/01/2014 - 12:35 | 4716480 Bloody Muppet
Bloody Muppet's picture

Or napalm out of equal parts of gasoline and frozen orange juice concentrate.

Thu, 05/01/2014 - 10:41 | 4715904 SAT 800
SAT 800's picture

Signs and Portents everywhere; and yet this Bitch might stagger on till October; Sure seems likely to have some kind of date with reality before Thanksgiving, tho.

Thu, 05/01/2014 - 10:43 | 4715909 PlusTic
PlusTic's picture

it'll be DOW 30,000 and these fuksk will still be buying this shit...unreal ponzi

Thu, 05/01/2014 - 12:26 | 4716441 dontgoforit
dontgoforit's picture

1929 all over again.

Thu, 05/01/2014 - 10:43 | 4715910 Stoploss
Stoploss's picture

Then what about FB?

No market for that either?

 

 

 

Oh, right.  The fake ads, oops.

Thu, 05/01/2014 - 10:45 | 4715914 The worst trader
The worst trader's picture

BTFATH! and hurry up this thing is going to the stratisphere

Thu, 05/01/2014 - 10:58 | 4715958 gjp
gjp's picture

Bonds up, stocks up, US dollar slightly up, commodities down, emerging markets down.  US Fed is reminding the peons who's in control.  Who's going to stand up to them?

Thu, 05/01/2014 - 10:48 | 4715920 SheepDog-One
SheepDog-One's picture

The 800 pound gorilla in the room is the Fed is the only one out there bidding up stawks, 'tapering' my ass!

Thu, 05/01/2014 - 10:51 | 4715931 Son of Loki
Son of Loki's picture

Is the Dow 80,000 yet ?

Otherwise MSM will say it's "Undervalued."

Thu, 05/01/2014 - 10:53 | 4715934 Obama_4_Dictator
Obama_4_Dictator's picture

While silver can only go up exponentially from here, the same can be said for the stock market and us dollar, except in the opposite direction. I sleep good at night.

Thu, 05/01/2014 - 12:29 | 4716453 dontgoforit
dontgoforit's picture

So can oil & gas.  Look for $6/gallon by 7-4-14 and watch things pull back like a snake on a branding iron.

I sleep well, too.  But I can ride my bike to the store.

Thu, 05/01/2014 - 10:55 | 4715941 Flux
Flux's picture

Eh, so...

Zero Hedge has been predicting a crash for how long now?

You know guys, safety doesn't come about by avoiding downswings. Safety comes from building wealth for when things do go to shit.

Yes, the market will crash someday. So make sure you're well off when it does.

Sermon over.

 

 

Thu, 05/01/2014 - 11:02 | 4715983 scubapro
scubapro's picture

 

 

bad econ data?, ignore it;  too high challenger job cuts?, ignore it;  .1% gdp growth due to forced healthcare insurance premiums? dont worry just ignore it.

bonds outperforming stocks? anomaly;  lowest labor participation rate in 30yrs, people dont want to work and are able to retire-- no worries;  defensives vastly outperforming cyclicals-- doesnt mean anything

not only are we to ignore bad recent date b/c its cold in winter; but to assume excellent growth b/c it'll be warmer and suddnely young people are getting jobs to form households to buy the now too expensive houses again...

I mean, it is really getting deep out there, just absurd.   

Oh and ignore the succession of ATHs in first the nasdaq then spx then djx---that series of bifurcated tops follwed by nasd retreat never leads to anything 

Thu, 05/01/2014 - 12:30 | 4716463 dontgoforit
dontgoforit's picture

This sounds like the DNC mantra:  "If we didn't say it happened, it didn't happen."

Thu, 05/01/2014 - 11:06 | 4716000 PontifexMaximus
PontifexMaximus's picture

They have chosen the wrong IB's.....or not come up with an adequate commission on the deal

Thu, 05/01/2014 - 11:26 | 4716113 TideFighter
TideFighter's picture

A Box account is more than a little dumb-like bottled water.

Thu, 05/01/2014 - 11:46 | 4716213 Racer
Racer's picture

"Eighteen months ago that company could have gotten away without a path to profitability... there's not a public market for companies like that."

That has to go along with Biden's 'have to spend money to save from going bankrupt' sayings as one of the most ridiculous!

Thu, 05/01/2014 - 12:32 | 4716473 dontgoforit
dontgoforit's picture

If we had some eggs, we could have some ham & eggs, if we had some ham.  Good point, Racer.  It's almost like we're being de-sensitized to reality on a daily basis.  The fish rots from the head down.

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