Like Chris Dixon, SA's Lenny Grover doesn't think we're seeing a broad-based tech bubble similar...

Like Chris Dixon, SA's Lenny Grover doesn't think we're seeing a broad-based tech bubble similar to 1999-2000. But he does think valuations for certain public names in hyped areas have gotten out of hand. As evidence, he points to how several popular companies sport EV/sales ratios above 10, and LinkedIn (LNKD) sports a higher market cap than Western Digital (WDC) in spite of a having a tiny fraction of its revenue and net income.

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Comments (5)
  • churchman
    , contributor
    Comments (30) | Send Message
    The value given to companies liked LNKD is a triumph of hope over logical thought. That triumph is a characteristic of a BUBBLE.
    2 May 2012, 09:18 PM Reply Like
  • brachiosaurus
    , contributor
    Comments (226) | Send Message
    lnkd likely to get hammered tomorrow
    2 May 2012, 11:21 PM Reply Like
  • brachiosaurus
    , contributor
    Comments (226) | Send Message
    long neck lizard is wrong again!
    3 May 2012, 04:45 PM Reply Like
  • brachiosaurus
    , contributor
    Comments (226) | Send Message
    does anyone really use linkedin? i check my account maybe twice a yr, then realize it is still pointless
    2 May 2012, 11:29 PM Reply Like
    , contributor
    Comments (19) | Send Message
    Branchout, newly born, has added 15 millions new members in one month while Linkedin has added the same number during a full quater !
    When you have a look to the fillings, non GAAP, you see that the expenses of administration and marketing have increased more fast than the income.So, must have doubts about the small yearly earning per share of about half a dollar for a valuation of quite $120.00!
    Have to think that the IPO has been made only last may.
    Your company has recently made its IPO and as CEO, you know that its accounting is filled with errors. What have you to do?
    Nothing at all for the boss of Groupon Incorporated GRPN :Nasdaq); Nothing to notify to the markets ! ! !
    No law requires you to do so ! ! ! .
    Any investor imagine that the weakness of internal controls has been identified before the IPO. However, a publicly traded company is not obliged to disclose this type of "retail" prior to the publication of the first quarterly or annual report following its IPO. It's the law and it is exactly what did Groupon Incorporated.
    Last april two, the share fell by 17%, thus bringing to less -44% its performance since its IPO;
    The previous week, the company acknowledged that its controls on accounting procedures included "weaknesses."
    "significant". And also that, finally, the sales of last quarter of 2011were lower and the losses much mrore
    important that previously announced ! ! !
    Mislead investors in this way is perfectly legal, with a fault in the Sarbanes-Oxley Act, passed in 2002 after the
    scandals Enron and WorldCom;
    The law specifies the accounting systems and controls that must be in place in any listed company, but it does not apply to those who are preparing an IPO; nuance...
    In theory, the audit firms are there to alarm the company; But Ernst & Young, which checks the GRPN accounts, didn't
    ruled on the validity of the results and control procedures in the audit report, because the law provides it up to the second year after the IPO; The prospectus regarding the IPO don't have to state more information ! ! !
    Very cool,isn't it ?
    Who knew that Groupon Incorporated did not the road, then? Two old cranky Accountants of the name of the blog created by two professors of accounting ("Grumpy Old Accountants"); in August already, they considered it absurd to believe that GRPN would be able to have proper procedures after 17 acquisitions in a year, an extension in 45 countries and after the number of employees went from 37 to 9'625 in two short years.
    In September - two months before the IPO of these rotten securities , Groupon Incorporated had corrected its 2010 results.
    A turnover reduced from 713 million to $ 313 million, a tiny difference of 56% and $ 400 million ! ! !.
    Of course, the market made as if it had seen nothing ! ! ! only a tiny difference of 56% ! ! !.
    The future should book new beautiful surprises: last April 6, the President Barack Obama has signed a law which exempts for
    five years newly listed companies whose turnover is less than $ 1 billion to undergo an independant audit ! ! !
    But not only that : the exchanges between the S.E.C. (Securities and Exchange Commission) and a company before it's IPO will remain secrets; In short, investors will have to bet with eyes closed.
    As the CEO of GPRN, the one of LNKD is for now obliged to do nothing ! So, we could have surprises.LNKD is already in a bubble, the coming quater should point that with a slowing of the gowth!
    5 May 2012, 03:32 AM Reply Like
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