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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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Fri, 08/10/2012 - 14:32 | Link to Comment Doubleguns
Doubleguns's picture

Another face plant. Don't look!!!

Fri, 08/10/2012 - 14:34 | Link to Comment vast-dom
vast-dom's picture

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


Fri, 08/10/2012 - 14:48 | Link to Comment EscapeKey
EscapeKey's picture


Fri, 08/10/2012 - 16:02 | Link to Comment vast-dom
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! 

Fri, 08/10/2012 - 18:16 | Link to Comment Whiner
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.

Fri, 08/10/2012 - 14:33 | Link to Comment malikai
malikai's picture

Tremendous Success, muppets!

Fri, 08/10/2012 - 15:22 | Link to Comment Nothing To See Here
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.

Fri, 08/10/2012 - 16:04 | Link to Comment knukles
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....

Fri, 08/10/2012 - 14:34 | Link to Comment caimen garou
caimen garou's picture

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

Fri, 08/10/2012 - 14:34 | Link to Comment timbo_em
timbo_em's picture

Those evil Borgs with their mighty tractor beam!

Fri, 08/10/2012 - 14:36 | Link to Comment Hype Alert
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.

Fri, 08/10/2012 - 14:40 | Link to Comment JohnG
JohnG's picture

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

Fri, 08/10/2012 - 14:53 | Link to Comment Hype Alert
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.

Fri, 08/10/2012 - 15:29 | Link to Comment Nothing To See Here
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.

Fri, 08/10/2012 - 20:51 | Link to Comment Freddie
Freddie's picture

HFTs = Condo flippers

Fri, 08/10/2012 - 14:54 | Link to Comment malikai
malikai's picture

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

Fri, 08/10/2012 - 16:11 | Link to Comment hannah
hannah's picture

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

Fri, 08/10/2012 - 14:37 | Link to Comment Dr. Engali
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.

Fri, 08/10/2012 - 14:42 | Link to Comment Hype Alert
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.

Fri, 08/10/2012 - 15:01 | Link to Comment PontifexMaximus
PontifexMaximus's picture

Bayern über alles?

Fri, 08/10/2012 - 15:35 | Link to Comment Carl Spackler
Carl Spackler's picture

Nicht wahr.

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


Fri, 08/10/2012 - 17:28 | Link to Comment Debtonation
Debtonation's picture

They should have IPO'd at $0.

Fri, 08/10/2012 - 19:35 | Link to Comment Dr Benway
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.

Fri, 08/10/2012 - 14:41 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

MANU stink!!

Sat, 08/11/2012 - 00:56 | Link to Comment Freddie
Freddie's picture

The Glazers are scum as well.

Fri, 08/10/2012 - 14:41 | Link to Comment Beam Me Up Scotty
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!!  =)

Fri, 08/10/2012 - 14:42 | Link to Comment govttrader
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??

Fri, 08/10/2012 - 14:54 | Link to Comment Herd Redirectio...
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...

Fri, 08/10/2012 - 14:48 | Link to Comment EclecticParrot
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.

Fri, 08/10/2012 - 22:56 | Link to Comment Freddie
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.

Fri, 08/10/2012 - 14:49 | Link to Comment Silvertrader
Silvertrader's picture

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

Fri, 08/10/2012 - 14:50 | Link to Comment Antifaschistische
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.

Fri, 08/10/2012 - 15:33 | Link to Comment pods
pods's picture

Avoid the clap.

-Jimmy Dugan.


Fri, 08/10/2012 - 15:52 | Link to Comment The Wizard of Oz
The Wizard of Oz's picture

If she smokes, she pokes.

Fri, 08/10/2012 - 15:42 | Link to Comment Bankers Must Dye
Bankers Must Dye's picture

And if said hobbies are hookers and blow, then what?

Fri, 08/10/2012 - 16:02 | Link to Comment The Wizard of Oz
The Wizard of Oz's picture

buy a boat!

Fri, 08/10/2012 - 15:00 | Link to Comment PontifexMaximus
PontifexMaximus's picture

i wanna know the names behind this rigged game.

Fri, 08/10/2012 - 15:02 | Link to Comment khakuda
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.

Fri, 08/10/2012 - 15:05 | Link to Comment JohnKozac
JohnKozac's picture

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


But "Men United?" Forget it !

Fri, 08/10/2012 - 15:08 | Link to Comment Meesohaawnee
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

Fri, 08/10/2012 - 15:14 | Link to Comment css1971
css1971's picture

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

WTF? Who thought that was a fantastic idea?

Fri, 08/10/2012 - 19:48 | Link to Comment smiler03
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. "

Fri, 08/10/2012 - 15:15 | Link to Comment Father Lucifer
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Fri, 08/10/2012 - 15:32 | Link to Comment Mr_Wonderful
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.

Fri, 08/10/2012 - 15:41 | Link to Comment Bunga Bunga
Bunga Bunga's picture

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

Fri, 08/10/2012 - 16:15 | Link to Comment Bear
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

Fri, 08/10/2012 - 15:50 | Link to Comment walküre
walküre's picture

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

Fri, 08/10/2012 - 15:53 | Link to Comment razorthin
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?

Fri, 08/10/2012 - 15:54 | Link to Comment Debtonation
Debtonation's picture

A daytrader's dream come true.

Fri, 08/10/2012 - 16:10 | Link to Comment Bear
Bear's picture

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

Fri, 08/10/2012 - 16:19 | Link to Comment gunsmoke011
gunsmoke011's picture

You know it is bad when even CNBC comments on it - saying that with the obvious syndicate bid at $14.00 - hedge funds with their HFT Robots will boy $14.00 and sell $14.01 all day long - generating huge volume for which they will receive an exchange rebate. so basically - they make more in volume generated rebates than they do in trading the stock. Amazing. Oh well - personally, I gave up on this POS months ago after 20 years of trading - anyone who cannot see the writing on the wall is either blind or dillusional. The only regret I have is that I will probably not be fully short when the implosion happens - since it will probably occur in the overnight session - market will open / or not - Limit Down and it will be impossible to get in as it continues to gap down limit with each attempt to re open. The CRASH that is coming will happen in minutes or hours -- not days weeks or months IMO.

Fri, 08/10/2012 - 16:29 | Link to Comment walküre
walküre's picture

With your 20+ years experience, do you believe that shorting will result in trading profits when this broken and manipulated market finally goes KABOOM? For all we know this market could paint the picture of a slow and steady grind higher but all underlying equities are going into the dumpster. I think it's already happening.

What we see is not a true reflection of the strength or rather weakness of individual equities. It would be no problem for the cartels to show us a steadily rising S&P and not finding a single stock in the basket that actually rose that day.

Fri, 08/10/2012 - 18:32 | Link to Comment gunsmoke011
gunsmoke011's picture

Good Point - to be honest I don't know what to think anymore - have seen things in this market over the past couple of years that I would have thought impossible - which is why I find other things to do with my time other than trade - or should I say gamble.

Fri, 08/10/2012 - 23:01 | Link to Comment Freddie
Freddie's picture

Even if you were able to time the implosion and short it - good luck getting your money out the next day or week.

Fri, 08/10/2012 - 16:25 | Link to Comment walküre
walküre's picture

... and down AH // LOL

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