JMerryHaus

Li-Ion Battery startup goes public yesterday and the stock is up 50% on the first day. This type of activity is almost always reported as a ‘win’ for the stock, but the reality is that it means the stock was massively mis-priced and the huge part of the value captured from the market participants went to the inside customers of the investment banks that underwrote the offering.

I am pretty sure it was Google who went to market with a reverse Dutch auction that resulted in their stock not moving for quite some time after it debuted. The press panned the whole process, practically describing it as ‘boring’. But Google’s shareholders are the ones that captured 99% of the market value, which sounds about right to me…