Twitter has formally declared it'll flog its shares at $26 a pop on the New York Stock Exchange on Thursday. For its initial public offering (IPO), the microblogging titan said it will 70 million common shares of its stock to investors with a starting clip of $26 per share. The offering would net the company upwards of $2bn. …
"While Twitter has yet to actually overcome the pesky hurdle of turning an actual profit ..."
Pah, that's old economy. The new economy drives share prices higher based on nothing more than an every increasing pool of retirement funds needing to put their money somewhere. The shares are simply passed from one managed fund to another in a merry-go-round that doesn't involve people who actually expect a dividend.
This would only be exposed by a demographic change which, co-incidentally, will be covered by a statutory increase in the amount you are 'required' to contribute.
Move along now, Nothing to see here.
10 or 20%
So, will it be a 10 or 20% drop from the IPO price by the time it closes?
Who buys into this? That is an absurd amount of money even before you think, "huh whens the last time they had a profit, but fuck logic WE HAVE CELEBRITIES INSTAGRAMMING THEIR FOOD.
"its underwriters had seen an increased interest from perspective shareholders"
These are the ones looking at it from a different angle, right?
Re: looking at it from a different angle, right?
Wrong. They're the ones seeing it diminishing to nothing at some point in the future.
To keep the markets alive, one needs fantasy and mugs and black swan* songs/crazy tweets:-)
And what is Twitter going to selling that is attractive enough to make a profit ...... which is money for nothing, isn't it? Or is just selling itself to phantom markets just all that fiat capitalism and ponzi mercantilism needs not to have to deal with current marching anarchy and presently building mayhem, markets panic and systems collapse?
And remember to never forget that to try and hide and deny the truth, makes one a universal pariah and prime enemy target of every state ..... which be a really stupid move to make or to have earlier made.
*http://en.wikipedia.org/wiki/Black_swan_theory ..... The black swan theory or theory of black swan events is a metaphor that describes an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight. ..... Taleb mathematically defines the black swan problem as "stemming from the use of degenerate metaprobability":-)
Degenerate metaprobability ..... nice one, Taleb :-)
Is Twitter stock market listing a Novel Application in Vapourware Management for Futures Quant Programming and Mass Investor Manipulation/Flash Crash Fleecing?
This sale could actually be a real success. Like the Facebook one was.
I actually heard a market analyst on the radio the other day, saying that Twitter's under-writers need to be careful on pricing, in order to not price it too high, and leave nothing for the market.
i.e. his advice to them was not to maximise the profit for their paying client (Twitter), but to sell the shares for less than the market was willing to pay, so the early 'investors' can sell at a nice profit. Which is lovely for the market of course, but not so much for Twitter.
By those lights, the early Facebook hoping-for-the-greater-fool buyers got screwed, and Facebook's owners got all the money that it was possible for them to get - which is a successful IPO in my book. Obviously not so good for the traders.
Obviously both valuations are totally bonkers though. Facebook might be worth a good deal, given all the captive eyeballs it's got, and the fact it makes decent profits. But over $100bn seems mad. Twitter doesn't even have profits yet, or the same kind of customer lock-in - so I don't see how it's worth all that moolah.
I'm so glad I stopped paying into a pension, and put my hopes of a non-catfood-eating-retirement elsewhere. At least it's not my money being wasted. I'm sure I can manage to bollocks-up my own investment without help from the professionals...
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