Nic Colas: The Ten IPO Commandments

In the shadow of Facebook’s (NASDAQ: FB) awful IPO comes this list of “commandments” for successful public offerings (IPOs and secondaries) by Nic Colas of ConvergEx:

Cre­ate The Illu­sion of Scarcity. The biggest chal­lenge to a suc­cess­ful stock offer­ing is to con­vince the base of buy­ers that there is much more demand than sup­ply. Rais­ing the price range of an offer­ing a good sign. Increas­ing the num­ber of shares is much more prob­lem­atic and requires a “Mea­sure twice, cut once” . . .

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NYTimes: Disclosure by Short-Sellers Would Improve Market Clarity

I couldn’t agree more with this NYTimes article on short seller transparency:

The questions were fairly innocuous and appeared to be probing the breakdown between distributors and the actual buyers of Herbalife products. Yet soon after Mr. Einhorn’s questions, the company’s shares tumbled. Investors were assuming he knew something and had placed a big short bet.

Mr. Einhorn, however, did not and has not disclosed whether his firm has any position whatsoever in the stock. Does that make sense . . .

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Dilbert on Pro Forma Statements

Dare I say that this Dilbert strip should serve as a warning to potential Facebook IPO investors?

Source: Dilbert.com

 

Author Disclosure: None

Talk to Frank about this Dilbert strip

QOTD: Mark Zuckerberg and the Marshmallow Test

From Henry Blodget’s excellent article in NYMag, The Maturation of Mark Zuckerberg:

When talking about Zuckerberg’s most valuable personality trait, a colleague jokingly invokes the famous Stanford marshmallow tests, in which researchers found a correlation between a young child’s ability to delay gratification—devour one treat right away, or wait and be rewarded with two—with high achievement later in life. If Zuckerberg had been one of the Stanford scientists’ subjects, the colleague jokes, Facebook would never have been created: He’d . . .

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Mike Wallace interviews Ayn Rand (1959)

I am a big fan of Ayn Rand and I was absolutely thrilled to come across this interview she did with Mike Wallace from 1959. She discusses the basis of her philosophy, objectivism, which was taking the United States by storm:

(h/t Ritholtz)

 

Author Disclosure: None

Talk to Frank about Ayn Rand