Alibaba IPO is a big failure just as FB

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noblehawk

Every media saying Alibaba IPO is a big success! but from trading view, it is totally bullshit.
Just look at it's daytime price, always below the opening price: 93
What does it mean? more sellers than buyers.

Soared 38 percent? it is before opening. Does not matter at all. Even it up 3800 percent.It just belongs to some inside exclusive circle group. The opening, daytime, ending price is more important.

Remind me of FB. The first day time price is just close to the opening price. Then it down 50%!

Wall street never change. Alibaba is just another joke for mass American. laugh
 
The fact that Alibaba traded in a small range without big moves shows that the IPO was done properly. NYSE DMM and GS did an excellent job for the company and investors. Their goal was not to provide you with trading opportunities.
 
noblehawk said:
Soared 38 percent? it is before opening. Does not matter at all.
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Dude, you don't know anything about IPOs at all. As 1245 said, it was done perfectly, making an extra 38% for the company (an IPO is to raise money for the company my dear), instead of leaving it on the table for the investors. Investors should be repaid by time, not because they can quickly dump the allocated shares in the first 10 minutes....
 
Plus, the company knew they could price this offering higher and decided against it. It's a hard balance. FB IPO on the other hand, IMO, was the worse run IPO in history. They priced it too high, placed stock in poor hands and the NASDAQ was not able to handle the message units near the open and many investors could not enter or change their limit or market orders.

The NYSE is not dead. I would rather have a DMM and the NYSE as my listing agent than NASDAQ any day.
 
Pekelo said:
Dude, you don't know anything about IPOs at all. As 1245 said, it was done perfectly, making an extra 38% for the company (an IPO is to raise money for the company my dear), instead of leaving it on the table for the investors. Investors should be repaid by time, not because they can quickly dump the allocated shares in the first 10 minutes....
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Just to clarify, it made an extra 38% for the existing shareholders of the company, AT the expense of the company for the portion of shares it sold. So for what was raised at $68, that was at the expense of Ali Baba's balance sheet, for the benefit of the inner circle of buyers at $68.
 
Definitely it is what i want to say. Actually the company and the underwriters and the NYSE leave no money on table for open market for outsiders. Every penny benefit going to the pocket of the inner group.
So the problem occurs now. As they donot leave money for outsiders, outsiders donot want to join.
So you can see the price forming for the first day. and because no outsiders ,no new money coming, the price has only one way to go, it is down!
 
My point is that because all the process is done inside the inner group, and no outsiders join. The open market price is just like a symbol, without any meaning.so why they go IPO? Why not to just sell the all shares to the those big institutions who got the shares until 92 and finish the circle by themselves and inside them? Actually the market and the price movement prove it is true: The market without movement is dead market. Do you think the price like parallel line is just like a deadline? laugh
 
It's a good question? Why does an IPO have to be under-written by investment banks, whose shares are later sold on the secondary market? Why can't a company just IPO their shares directly to the market themselves? At some point, the original shareholders open bidding to the general market. So why not cut out the middleman? Why is a middleman even needed?
 
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