Submitted by Tyler Durden on 06/01/2015 15:35 -0400
All too often investors are bombarded with bullshit presented as facts by talking heads in constant denial and forever protecting their commissions – as opposed to protecting their client’s interests. One notable case in point is the “it’s different this time” meme surrounding IPOs and their apparent ‘realness’ in the current new normal vs the 199/2000 dotcom boom/bust. As the following chart shows: yes, this time is different – there has never, ever, been a greater percentage of unprofitable companies IPOing…
h/t @Lach1435
So, talking head bullshit or fact-based data? You decide…
Money doesn’t disappear on Wall Street, it gets stolen the old fashioned way.
Tick, tick, tick….Damn, if only I could see the face of the timer connected to the detonator, so that I could know when to duck and cover.
The charts are struggling higher, but it seems like Mr. Market really, REALLY wants to eke out one more high before the Greek Tragedy begins the biggest game of Toppling Dominoes in History.
Or it could roll over tomorrow. Or it could zoom higher for another year. What do I know? NOTHING.
@robert; people respond to incentives. IPO’s are an approved means of separating the rubes from their money, much like state-run lottery systems “legitimize” gambling.
For 40-50 years the USA’s economy has floated higher and higher on volatile credit-money.
Industries across the globe moved into that Hindenburg as it flew higher and higher, not organically but via Keynesian and Monetarist Doctrines (kissing cousins) that suggested that by making credit ever-more available, more-than-natural levels of economic activity could be brought into being.
Nirvana! Utopia! Full Employment! A Jaguar XJ or an Escalade in every stall of every 3-car garage!
Oh, but what if there’s a spark?
Admin, what percent of the professional investors do you think are blind fools who have bought into their own hype vs. shady pursecutters who know its a trap and are just trying to grab a few billion as they escape the soon to be burning building? I’m not super great at guessing people’s motives, tending to take things at face value.
When I was in school, for our final semester, all engineering students had to do a senior project. One group I knew created a system for measuring how full a glass was, based upon the weight difference between full and empty. I asked them if they were planning on modifying it for cattle waterers, let farmers automatically know if something was getting low in remote pastures.
No, there wasn’t any “real” money in that.
What about storage barrels, for hazardous waste? A cheap system connected over the barrel that could detect leaks, even if it was a gas evaporating? Seemed like a reasonably application.
No, that was too much of a “niche” market.
Well, what were you planning on using it for?
They were going to make a touchscreen device for every table at restaurants to automatically let the wait staff know what you wanted and have them bring it over to you, then refill instantly when it gets low. It would make the waitresses more efficient because they wouldn’t even have to talk to the customers. Then, once the market was established, they would convert the system to special glasses that the new system would only work with after that point. They could then sell these special glasses at a markup, making profit.
When I tried to point out that waiters interact with you because that’s how they get tips, I got patronizing dismissal. Fine, whatever. Your concept is stupid, but that’s not my problem. How much will this stupid piece of masturbatory techno-wanking cost?
$15,000 for a small restaurant for initial set-up, with a steady income from replacement glasses down the road. Big restaurants would be more.
ARE YOU FUCKING KIDDING ME?!? Nobody would pay that for a restaurant. But don’t worry, it would make up for it with improved efficiency (side note: I’m betting efficiency to become a new corporate buzzword now that “diversity” and “green” are finishing their run).
Thing is, I can’t decide if those guys were idiot douchebags who never spoke to anyone who worked in a restaurant, or greedy fuckers targeting the cult-of-apple-and-iWhatever for everything they could milk them for.