The Broken Market Chronicles: 200% Of Man United's Float Will Trade In A 10 Cent Interval Today

Tyler Durden's picture

With 26 million shares traded and two more exhausting market-making hours to go for MANU's underwriters, it is clear that more than double the 16.67 million share float will be 'rotated' at least twice and yet stay in a 10 cent interval (with well over 95% of that within a minute 5c interval). What is perhaps more stunning is the massive bid at exactly $14 - the IPO price - as if they will never learn. Of course there are buyers for every seller and many algos played all day but with a massively dominant bid soaking up any and all offers near $14.00, we suspect the underwriters of the MANU IPO are 'pulling-a-facebook' and onboarding whatever they have to. There has now been 9.5 million shares bid at $14.00 (and none asked) - more than half the float alone! It seems increasingly self-evident that IPOs are simply weath transfer mechanisms - no win-win - and that the value-add from 'stock exchanges' is rapidly converging to zero.

The magic $14.00 defensive line...


and the massive syndicate bid that has soaked up every offer...

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Doubleguns's picture

Another face plant. Don't look!!!

vast-dom's picture

HFT's on vol churn will profit. Everyone else is a fucking muppet. 


EscapeKey's picture


vast-dom's picture



never underestime the american sheeple's lack of interest in getting fleeced. it's not between the have's and have not's, it's ultimately between the knows and know nots! 

Whiner's picture

Sheeple have nothing left but debts, old car and food stamp-disability payments from ObammyCare. Never knew what hit 'em. Still don't.

malikai's picture

Tremendous Success, muppets!

Nothing To See Here's picture

IPO Price = X + Y


X = share value per unit

Y = underwriter's cut

Knowing this, you really have to be a true believer and/or an automated robot controlled by mainstream news to buy IPOs because you are asking to be skinned.

knukles's picture

Used to be in the good old days that stinky shit deals like this were brought to market right at the peak of ebullience when lots of money was chasing everything in sight...

Oh wait....

caimen garou's picture

ah,masters of the universe hard at work! even on a friday afternoon. what a feaking shame!

timbo_em's picture

Those evil Borgs with their mighty tractor beam!

Hype Alert's picture

I don't see how the HFTs can make money scalping from each other without any living muppets left in the arena.

JohnG's picture

"Rebates" from the exchanges just for providing "liquidity" is how.

Hype Alert's picture

But if humans/muppets aren't buying, which seems to be the case more and more, there shouldn't be any $$ to pay for those rebates.  In the end, it becomes just an expensive display for weird algo painted charts.

Nothing To See Here's picture

Don't forget that HFT's buy from each other on several stocks, not just one. So when HFT A buys ManU from HFT B, HFT B buys another crap from HFT A. An hour later, then do the reverse. Both help each other doing so, no need for muppets when nobody trades on fundamentals and when there are only a few players trading with each other with the sole purpose of keeping the market up.

malikai's picture

That depends. If the HFT kills the exchange, the original question is still valid.

hannah's picture

the 'exchange' is already dead. HFT is the CPR to keep the appearance of living going.....

Dr. Engali's picture

I find it unbelievable that anybody would buy into an IPO these days. PT Barnum was right...there's a sucker born every minute.

Hype Alert's picture

It's an illusion.  The problem with the Faceplant IPO was the mirrors failed.  It seems inconceivable to me that IF there were any real buyers that Faceplant would have failed so badly.  Blaming it on software and the system should have raised flags at the MSM, but they know who signs their paycheck and they are merely circus cheerleaders encouraging any remaining muppets to join the slaughter.

Carl Spackler's picture

Nicht wahr.

(Not after that poor display at home against Chelsea.)


Debtonation's picture

They should have IPO'd at $0.

Dr Benway's picture

Well the institutional investors and pension funds and so forth still provide some dumb money to flow in, just not enough to keep the charade going.


Most people have no idea what their money is invested in, who is doing it or what is happening.

Beam Me Up Scotty's picture

When are puts available?  I made a few hundred bucks on some token FB puts on the first day those were available.  I made more on FB than Morgan Stanley did!!  =)

govttrader's picture

so what ur saying is...wall street just bought a soccer team...why buy something for 14 dollars when you can buy it for 60,000??

Herd Redirection Committee's picture

Its just 10 or 20% of Man U on offer.  But don't worry, 3b or so is a 'fair valuation'... For a team maybe worth 1, or 1.2 billion...

EclecticParrot's picture

No arguments on the article's points, but can't help being excited about the impending start of the real 'football' season, with the Beautiful Game a clear alternative to tobaccy-spittin'' rednecks taking catnaps on the diamond (no doubt as bored as their hot dog ingesting fans), as well as helmeted, steroid-gulping sumo wrestlers who push each other around American football fields for 6 seconds before crawling back to the huddle to plan the next infliction of brain damage, interrupted every 10 mins for watery beer commercials.  It's become bumper-cars with human cerebrums  -- Roman Coliseum fans never had it so good.

Freddie's picture

Bread and Circuses for the sheep idiots who watch TV.  YOu are probably one of those serfs who keeps the elites in power by watching TV and Hollywood's shit.  Keep up the good work moron.

Silvertrader's picture

I don't buy soccer teams. I prefer cold hard metals. My favorite: Gold, Goud, AU!!

Antifaschistische's picture

Rule # 17a.  Have hobbies.  It makes for a more fulfilling and longer life

Rule # 17b.  Do not think of your hobbies as financial investments and don't buy stock in the things of life that bring you recreational pleasure.

PontifexMaximus's picture

i wanna know the names behind this rigged game.

khakuda's picture

At least you know IPOs are being manipulated upon issue.  The bankers basically tell you they are going to support the price for a bit so you know the rules going in.  They want a 10-15% premium ideally and a hold above IPO price at a minimum.

But how the S&P manages to rally back to flat or slightly positive EVERYDAY like magic on its own for months seems statistically impossible.

JohnKozac's picture

If it said "Wo-Men Untied' I might loook into it.


But "Men United?" Forget it !

Meesohaawnee's picture

arenet stats applied to chance. ?? ive said a thousand times. the algos are programmed what to finish every day. pre determined. Stats dont apply

css1971's picture

Manchester United are floating on the New York stock exchange? In America?

WTF? Who thought that was a fantastic idea?

smiler03's picture

Their American owners.

"English football's greatest name is being re-routed to the New York Stock Exchange via the Cayman Islands, to pay debts a US family was allowed to load on, to buy one of our great clubs in the first place. "

Father Lucifer's picture


Mr_Wonderful's picture

These soccer super teams have 2-3 major key players. Take them out and it crumbles into mediocricity. It´s an obvious danger in having these things trade in the market. The technological possibilities are huge. You can attack people in so many ways and cut down their capabilities and make them sick. It´s a ruthless world out there and huge money made with all sorts of manipulation and foul play.

Bunga Bunga's picture

ES close to a multi year high and IPOs are DOA. That's how a broken market looks like.

Bear's picture

But another big week 1356 to 1402 ... three more weeks like this and we'll be into record territory ... I'm selling Bear Ball Sandwiches with Mayo Aglo until Libor Day

walküre's picture

Buy HOOL instead. The fans of Manchester United producing one helluva side-show worth billions to advertisers.

razorthin's picture

If my eyes don't deceive me, I think this week was the lowest ES trading volume since Dec 2010.  Do I have that right?

Debtonation's picture

A daytrader's dream come true.

Bear's picture

Biggest MoMo Rally of the day 14.01 ---------------> 14.09  OMG the Market has gone Flash and Furious on us