Big IPO’s: the Hype and the Aftermath

Media today is all abuzz about the FACEBOOK IPO! They want to know: what do I think?

These two charts from Zerohedge of the 8 most touted internet IPO’s in the past year or so, reiterates my thoughts on new issues pretty well. The group includes GRPN, ZNGA, LNKD, P, YOKU, DANG, AWAY, and FFN. The first charts the average return of the group over the following 12 months from the issue date: -54%:

The second shows the individual price performance of the issues from day one:

And of course there was the Sprott IPO which I already discussed here last week.

Yes, yes, Google was a bit of an outlier, it went way, way up and then way, way down and now is at the level it first reached in 2007. Timing or blind luck matters a ton in this stuff. But generally, IPO dogs don’t hunt for initial dupes “investors”.

Source: Juggling Dynamite