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Accusing underwriters of digging out their late 1990s playbook, Jim Cramer describes the...

Accusing underwriters of digging out their late 1990s playbook, Jim Cramer describes the LinkedIn (LNKD) IPO as "preposterous." By offering just a sliver of the company, the promoters purposely created a frenzy for the shares. "It's a toxic way to price, it's a terrible thing to do."
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Comments (10)
  • TruffelPig
    , contributor
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    I would have to agree with Cramer.
    19 May 2011, 03:46 PM Reply Like
  • DagnyTaggart
    , contributor
    Comments (486) | Send Message
     
    Words that should be said few times and far between, but yes, I also agree with Cramer.
    19 May 2011, 03:51 PM Reply Like
  • warrenrial
    , contributor
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    No one held a gun at your head to buy it.
    19 May 2011, 03:52 PM Reply Like
  • NYC Trader
    , contributor
    Comments (513) | Send Message
     
    This is a sad day for the markets. This company is not worth anywhere close to where it's trading. I do wonder if anyone actually read the S-1 form before they "invested" into this company. To value a company at 47x revenue and something like 737x earnings is unheard of. "Here's $737 for $1's worth of earnings!" That's what I call grand theft.
    19 May 2011, 03:56 PM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    Don't panic. Won't be long before you can short it.
    19 May 2011, 04:04 PM Reply Like
  • HiSpeed
    , contributor
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    The facts tend to be forgotten on Day 1 of many IPOs. Reality will eventually kick in as the market saw after the dotcom craze.
    19 May 2011, 04:06 PM Reply Like
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    Its said they may be able to begin shorting it as soon as Tuesday. With so few shares outstanding and the stock already haven risen to preposterous levels, it seems like this thing may pop as soon as next week.
    19 May 2011, 04:23 PM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    Of course with so few shares outstanding, shorting is fraught with danger as it can easily become hard to borrow.

     

    The lunacy of today's price action may cause more harm than good, as people begin to realize how ridiculous many prices are today in Bubbly Ben's crazy money world and minds return to the collapse of the Dotcom market. Glencore was a far bigger IPO in London today and it closed flat, despite being priced for a 5 - 10% jump, but a CV website rose more than 100%....
    19 May 2011, 05:04 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4108) | Send Message
     
    Ridiculous, isn't it? The bad thing is that this also endangers investors who did not fall in the trap and did not buy stock. This is a complete money sink operation and only the brokers are happy.
    19 May 2011, 06:14 PM Reply Like
  • lone2boy
    , contributor
    Comments (27) | Send Message
     
    Proof we are heavily sedated and unaware of our surroundings
    19 May 2011, 08:33 PM Reply Like
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