Wednesday, May 23, 2012

Barry Ritholz is Funny

This made me chortle. Ritholz was doing an interview on the Facebook stock debacle, and I liked this:
To those shareholders who are now underwater and complaining that they accepted a last-minute increase in the allocation of what was expected to be a hot deal only to find out otherwise, Ritholtz says in jest, "What are you going to say, I thought it was a good deal at 100 times earnings. But this 150 times earnings? That's ridiculous."
It's funnier when he says it in the video. I know some people who were really screwed by Nasdaq's systems going down on Friday, and so I think Nasdaq deserves more blame than Morgan Stanley, the underwriter. As for this thing not popping on Friday as promised by the statistics of history (the standard 12% jump): when you are valuing stocks at 100x earnings, you can't say that 80 or 120 times earnings is crazy. It's all crazy.


Anonymous said...

Barry is much more enjoyable on TV. He tends toward bilious when he goes into detail at The Big Picture. Anyone allocated on the deal has nobody to blame but themselves, they should have hit bids when the syndicate bid disappeared.
That said, this was horribly mishandled at Facebook, Morgan, and the NASDAQ.

Mercury said...