Last Friday we presented [5]the dismal performance (and major divergence with broad equity markets) of recent IPOs and reflected on what this meant for the millions of retail investors who were 'suckered' into these must-win dot-com-renaissance names. Again and again one name keeps coming up with regard to the worst-performing and most-1999-dot-com #fail-like names - Morgan Stanley. Since November of 2011, Morgan Stanley has 'successfully' brought three of the biggest disasters of Silicon Valley to market - GRPN, ZNGA, and of course, most recently, FB. What is stunning is that since the GRPN IPO on 11/3/11, investors in these three 'new' normal names have lost an incredible $58 billion in market cap with GRPN and ZNGA now down 70% from their IPO price and FB down 44%. Perhaps more intriguing is that IPOs keep coming as there appears to be a 'muppet' born every day.
The performance of Morgan Stanley's Big-3 IPOs post-launch...
[6]
and the retail-investor animal-spirit-crushing reality of a $60 Billion suck out...
[7]
Source: Bloomberg