BIDU cut in half and noone in the media reports it.

Discussion in 'Stocks' started by areyoukidding?, Aug 24, 2005.

  1. I find it interesting.

    Also, GOOG insiders sell a boatload of new shares and the media thinks they are going to spend it on a crappy Chinese company. Maybe the insiders (because they are insiders) know that the mkt is slowing down for them. Hmm.
  2. well, why would you sell 4 billion dollars worth of stock?
  3. What exactly is your question about BIDU :confused:
  4. Just that the stock got cut in half and noone gives a crap. i bet you this will be in the 20s by early 2006.
  5. A lot of China scams coming up asap.
  6. just email Bambi FRancisco at CBSMarketwatch, she was rooting for BIDU 2 weeks ago.

    there should be an investigation in the trading of BIDU on day of IPO. I wish Spitzer would go after market making firms, I am sure there is a lot of things going on.
    But back to BIDU, when an IPO has a $100 range close at 120 and then trades 50% below it's high 2 weeks later something is wrong. Nasdaq should change the listing requirements and maybe go to a dutch auction process to reduce the volatility in new issues, the way IPO's work is just a scam to quickly enrich bankers and executives .
  7. SteveD


    You do understand how an IPO is priced and then is opened for trading in the secondary market?

    Once it begins trading the officers have no involvement or reap no benefit as they have already sold their shares at the IPO price of $27/share.

    Same with the BD except for those that chose to make a market and they have bought shares at 27 also. Probably not many as there was a strong demand from the original subscribers.

    And, remember, the MM also has a lot of inventory of IPO's that dropped from the first day. Very few like BIDU.

    Get a prospectus and read it sometime, it will lay out the entire method of taking a company public.

  8. zdreg


    the officers do benefit as their unsold shares go up in value. this point is definitely made by the underwriters to the executives who question the initial ipo pricing after the fact.

    what inventory are you refering to?
    any excess or unwanted inventory is dumped in normal MM operations.
  9. SteveD


    Their stock is restricted as to when they can sell. If it is a "dog" stock could be at $10/when lockup period expires.

    Don't understand what you mean by "dumped". There are no extra shares just laying around, LOL. All shares are very definitely accounted and sold to someone at the offering price of $27/share.

    I suggest you get a prospectus and read it over very carefully and it will help you understand the process better.

    Good luck

  10. Thanks Richard, I worked for two large investment banking houses, I think i get the picture. Keep your comments to yourself.
    #10     Aug 26, 2005