No worries, once they get hollowed out from a cash flow standpoint Microsoft can prop them up with a token investment... I hear Bill Gates is fond of hand puppets and there's room next to Scott McNealy on the shelf
Wait until the procedure of this Dutch Auction is elaborated. There may be more rational fundamental based bidding this way than pure trading when IPOs open for trading. Rather than subscribing shares at $20 and it opens for trading at $80. People put in a deliberated offer. My guess is that the average sum paid will be much less extravagant than what the dot bombs traded for in thier first month. This way, Google will get most of the IPO dollars offered for the shares. But once they hit for trading, I suppose it's the same old feeding frenzy. Doesn't it take several months at least before options are written on a new issue? How many marriage offers do you think Brin and Page have received so far?
This is already ruined from the standpoint of a traditional IPO play. It will trade like a TASR or IPIX or MAMA trades. Tearing one and all a NEW A******LE.
I agree with marketsurfer. I personally think Google is being overhyped. I see an article on Google in the Business section of the SJ Mercury News everyday for the last week. I think it's gonna open up high from all the Market buy orders the day of the IPO. Maybe give one last push for a few days and then fall off. Something like UPS when it came out.
overhyped or not, shorting google directly or through puts from the get go isn't safe. Just like the traders who shorted the internet stocks when they went to $100 then got taked out when the stocks went to $200. The market doesn't have to follow common sense if it doesn't want to. Wait it out. look for the signs of hesitation on the bull run, then short.
kind of what i was thinking... but google ipo, may be similar to jblu's... i agree its overhyped, and prolly will be overvalued at the open, but none the less the market doesnt run on fundamentals alone... perception and greed and a myriad of other factors propel it in every direction... so make sure youre on the right side of that direction or youll be taken for a ride...
Dude, I don't trade equities so I am a bit out of place here (I used to trade them) but... shorting Google? Are you sure you want to do this? There is nothing like Google on the net. It makes a billion a year. They got a really sharp business structure. Well, I'm sure you know what you're doing but... *gulp* you got a SL set? You may need it. Google may very well continue going up. My plan is to buy $1000 worth of stock then look at it again... in about 20 years. to
If Google goes Naz, which it probably will, I'm sure it will become a hedge fund favorite like TASR. I do agree that it is very overhyped, just look at CNBC pumping it.