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General Category => General Discussion => Topic started by: Read the Footnotes on October 05, 2019, 09:47:05 AM

Title: IPOs or i-P.O.S. ?
Post by: Read the Footnotes on October 05, 2019, 09:47:05 AM
There have been many qualitative factors for years that indicated that PE/VC is was an area that was ripe for silliness to ensue. Do you think the recent round failing IPO's is a sign that these businesses were really i-P.O.S. ? Do you think that the fast reversal in how IPOs have faired this year is a PE/VC bubble is starting to deflate?

Lyft and Uber are Down since IPO
WeWork and Endevour IPOs were postponed
SmileDirectClub and Peloton made poor showings in their IPOs
Title: Re: IPOs or i-P.O.S. ?
Post by: alpha asset strategies on October 05, 2019, 12:17:15 PM
I think the PE / VC bubble is definitely starting to deflate.  However, I'm even more amused with your title for this topic. 
Title: Re: IPOs or i-P.O.S. ?
Post by: Read the Footnotes on October 05, 2019, 01:18:07 PM
I think the PE / VC bubble is definitely starting to deflate.  However, I'm even more amused with your title for this topic.

Thanks. I just made it up in hopes of amusing you.

Hopefully the discussion will be more amusing than the title. The topic is a bit redundant to the WeWork thread, but I don't believe there is a place to discuss the trend as a whole, so maybe this thread will be of use.
Title: Re: IPOs or i-P.O.S. ?
Post by: John Hjorth on October 05, 2019, 06:21:55 PM
To me, this is really locally & industry dependant. Success in this space is all dependant on all kind of skills. Some have them, others not - outcomes seem to me to be dependant of that.

To me, PE/VC is here to stay, but it's really not my kind of stuff, personally.

Disclosure : I'm invested in PE long term, by BAM [BBU indirectly] and Swedish Investor AB, [which just recently IPO'ed [successfully] EQT [<- !]]
Title: Re: IPOs or i-P.O.S. ?
Post by: Gregmal on December 02, 2019, 04:55:40 PM
https://www.marketwatch.com/story/pelotons-viral-ad-captures-a-116-lb-womans-yearlong-fitness-journey-to-becoming-a-112-lb-woman-2019-12-02?siteid=yhoof2&yptr=yahoo

Note to everyone. Pelotons are apparently bad gifts...Not a fan of the product, or the stock, but what the heck has society come to...who ever would have thought there'd be people outraged over encouraging a healthy lifestyle?
Title: Re: IPOs or i-P.O.S. ?
Post by: Spekulatius on December 03, 2019, 06:41:00 AM
I think lousy POS IPOís always existed, but they tended to be smaller issues they were placed by 2nd or 3 rate investment shops. What is new now is that some business with questionable models were growing in tens of billion $ valuation before the IPO. They were sponsored by deep pocketed investors like Softbanks,  it also mutual fund investors like Fidelity or the first Tier investment banks (GS, Morgan Stanley).

Softbank seems to believe they can create their own moat by outspending anybody else out there, which has some logical underpinning if you believe their investment can become dominant  platform companies. While this might be true, itís also a recipe to fund companies that blow through a lot of money and in some cases donít even show great economies of scale.