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Google's IPO Trading Defies Dutch Auction Logic?
TopShelf writes "Today's first-day trading gains for Google may not have just been the result of ambitious day-traders. This story from CBS Marketwatch alleges that Google deliberately set the $85 IPO price well below the true clearing price of their Dutch Auction, and issued fewer shares than expected, perhaps with the intent of limiting supply and assuring themselves a nice runup during the first trading day. In the story's informal survey, winning bidders only received 75% of the shares they should have."
So, they ignored the Wall Street gang, then played the same game ! The pop proves the dutch auction was a load of bollocks, the whole point was to ensure no pop !
The last minute drop in share price just proves the lack of interest in this sketchy IPO. It's a fucking search engine, people, wise up ! With a market cap close to General Motors, how can anybody really think a couple of geeks and a mountain of CPU's can, year on year, produce value. Because what discriminates them from anyone else, really ?
When the options appear they're likely to be overvalued too, so I'd sell the vol and mop up later.
As for the rest of you, spray your shorts by all means, but find value elsewhere and wait for GOOG to find a reasonable level.
Yeah, right.
In about 3-5 years hence, the idiotic portion of the slashdot crowd and geek community in general will equate google with Micro$oft.
Here is the lefty geek logic:
big public corporation = BAD;
small nonprofit = GOOOD
NO EXCEPTIONS