Blackstone Group IPO Trades Today - I Will Stay Away

So, it all starts today as the PE King, Blackstone Group begins trading.

It will trade under the symbol BX and priced at the top end of the range at $31 a share. If you believe in the "greater fool" theory, then this would be an indication that these firm are at the top and the people in the know are cashing in. This is especially relevant when you consider that KKR Financial Holdings LLC (KFN), probably the most well known to the general public of the bunch hired Citigroup (C) and Morgan Stanley (MS) to consider a possible IPO also.

If there was a huge upside to these folks, I do not think they would be cashing out and subjecting themselves to all the increased scrutiny a public company goes, through.

I will stay away . . .

Comments

[shane_stephens:]

They're still maintaining a major stake in the company. You make it sound as if they're packing up camp. Describing it as "cashing out" isn't exactly accurate.

2007 Jun 22 10:42 AM

[Hayweed:]

I think this is an attempt by the investors to monetize their holdings. Now that it is public, they can borrow against it, sell it or use it as collateral. These guys have so much money in this thing, how could they have monetized it any other way then to go public. If they start bailing out after any lock up then I would agree.

2007 Jun 22 11:08 AM